18 In re Tesla, Inc. Securities Litigation, Case No. 3:18-cv-04865-EMC (N.D. Cal.) - Statements Concerning Go-Private Transaction As noted, Tesla, Inc. designs, develops, manufactures, and sells high-performance electric vehicles and solar energy generation and energy storage products. On August 7, 2018, the Twitter handle associated with Tesla’s CEO sent a series of tweets concerning a take-private transaction involving Tesla, including: “Am considering taking Tesla private at $420. Fund- ing secured.”; “I don’t have a controlling vote now & wouldn’t expect any shareholder to have one if we go private. I won’t be selling in either scenario.”; “My hope is *all* current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment.”; “Shareholders could either to sell [sic] at 420 or hold shares & go private.”; and “Def no forced sales. Hope all shareholders remain. Will be way smoother & less disruptive as a private company. Ends negative propaganda from shorts.” Trading volume in Tesla stock rose to 30 million shares that day, and Tesla stock price rose to an intraday high of $387.46/share, approximately $45 above the prior trading day’s clos- ing price. Later that day, Tesla’s CEO reaffirmed that he was contemplating a take-private transaction for $420/ share, and that “Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote.” Beginning on August 10, 2018, several investors filed class action complaints, claiming that Tesla and its CEO made false and misleading statements that Tesla had secured funding to take the company private, in violation of Sections 10(b) and 20(a), and Rule 10b-5. A consolidated complaint was filed in January 2019. Defendants’ motions to dismiss are due to be filed in March 2019, and are scheduled to be heard in June 2019. Lopes v. Fitbit, Inc., et al., Case No. 3:18-cv- 06665-JST (N.D. Cal.) - Reduced Revenue Projections Fitbit, Inc. (“Fitbit”) is a technology company focused on health-related devices including wearable health and fitness activity trackers. In an August 2016 earnings release, Fitbit projected that its revenue for the full year of 2016 would be in the range of $2.5 to $2.6 billion. During a conference call the same day, Fitbit’s officers explained that Fitbit continued to be the leader in the worldwide wearable market by units as of the end of the first quarter of 2016, and that Fitbit saw opportuni- ties to continue expanding its market share in the U.S., including by potentially attracting customers who also used smartphones. During an October 2016 interview with Jim Cramer on CNBC, Fitbit’s CEO differentiated the company from Apple, Inc., explaining that Fitbit is a fitness social network coupled with hardware. In November 2016, Fitbit issued an earnings release in which it lowered its full year 2016 revenue guidance to between $2.32 and $2.345 billion, representing growth of approximately 25-26%, and fourth quarter revenues of between $725 and $750 million. Thereafter, in Janu- ary 2017, Fitbit announced its preliminary fourth quarter 2016 financial results, stating that its anticipated fourth quarter revenues were approximately $572 to $580 million, and that its annual revenue growth for the full year of 2016 was anticipated to be 17%, not 25-26%. Shareholders filed a federal securities class action against Fitbit and its officers, asserting claims under CASES TO WATCH