19 CASES TO WATCH GOODWIN Sections 10(b) and 20(a), and Rule 10b-5. Plaintiffs allege that Fitbit made materially false and misleading statements about the company’s mission and attempts to differentiate itself from Apple, the competition that Fitbit was facing, and Fitbit’s operations, business, finan- cial results and prospects. A lead plaintiff is expected to be appointed in early 2019, and an amended complaint likely will be filed thereafter. In re Alphabet Securities Litigation, Case No. 4:18-cv-06245-JSW (N.D. Cal.) - Data Breach Alphabet, Inc. (“Alphabet”), the parent company of Google, is a multinational technology conglomerate that is a holding company of several former Google subsidiaries. Among its products are web-browser Google, webmail Gmail, and the now defunct social media platform Google+. Google discovered a soft- ware glitch in the application programming interface in Google+ which exposed hundreds of thousands of users’ personal data in spring 2018, but did not dis- close the breach at that time. In the fall of 2018, the Wall Street Journal reported on the software glitch and data breach. Citing an internal Google memorandum, the Wall Street Journal stated that Google had not disclosed the data breach in part because of concerns about drawing regulatory scrutiny and suffering repu- tational damage. Subsequently, Google’s stock price declined by nearly 6%. Thereafter, Google announced plans to shut down Google+. Shareholders filed federal securities class action complaints against Alphabet and its officers, alleg- ing that between the discovery of the breach and its announcement, defendants made materially false and misleading statements regarding the extent of the breach and users’ data security in violation of Sections 10(b) and 20(a) and Rule 10b-5 of the 1934 Act. The district court consolidated the lawsuits and appointed a lead plaintiff in January 2019. A consolidated complaint is expected to be filed in early 2019. In re Intel Corporation Securities Litigation, Case No. 4:18-cv-00507-YGR (N.D. Cal. Jan. 23, 2018) - Alleged Design Flaw Intel Corporation (“Intel”) designs and manufactures computer components, including microprocessors, chips, digital imaging products, and systems man- agement software. On January 2, 2018, news outlets reported a design flaw in Intel’s processor chips that could make a computer’s operating system vulnerable to outside attacks. The online publication The Register reported that the operating system updates necessary to address this flaw would result in a significant slow- down for Intel-based computing devices. The next day, media outlets further reported that Google’s security team had discovered further flaws affecting computer processors built by Intel. That same day, Intel published a release on its website confirming that its chips contain a feature making them vulnerable to hacking. Further, on January 4, 2018, the media reported that Intel’s CEO sold $24 million worth of Intel stock and options in late November 2017, allegedly after Intel was informed of the security flaws in its semiconductors but before such flaws were publicly disclosed. On January 23, 2018, investors filed a securities class action against Intel and its officers under Sections 10(b) and 20(a) and Rule 10b-5, alleging that defendants made false or misleading statements concerning the company’s products’ vulnerabilities. A lead plaintiff was appointed in May 2018, and a consolidated complaint was filed in July 2018. On November 13, 2018, defen- dants moved to dismiss the consolidated complaint, arguing that: (1) defendants made no false or misleading statements about security vulnerabilities; (2) the com- plaint fails to allege specific facts giving rise to a strong inference of scienter, as required under the PSLRA; and (3) the complaint fails to state a claim for control-person liability because it does not allege a viable underlying violation. A hearing on the motion to dismiss has been scheduled for March 19, 2019. In re Oracle Corporation Securities Litigation, Case No. 5:18-cv-04844-BLF (N.D. Cal.) - Slowed Cloud-Related Revenue Growth Oracle Corporation (“Oracle”) is a software company that develops database software and technology, cloud engineered systems, and enterprise software products, offering on-premise and cloud solutions to a variety of end users. Historically, Oracle’s revenues were derived from the company’s on-premise software services, but in 2015 the company shifted its focus to cloud services as cloud storage. Throughout 2017, the company made public statements at conferences and through press releases that reported significant increases in cloud-re-