In 2018, Plaintiffs filed 403 new federal securities class actions, which was a 2% decrease from 2017 but still nearly double the average of annu- al filings from 1997-2017.1 The 2018 filings included more than 180 cases challenging disclosures made in connection with mergers and acquisitions (M&A filings) and the fifth-highest number of “core” filings (excluding M&A filings) on record.2 As depicted in Figure 1 below, the number of filings against publicly traded companies in the Technology and Communica- tions sectors (collectively referred to herein as “technology companies”) increased by 56% from 32 in 2017 to 50 in 2018.3 In 2018, the likelihood of an S&P 500 technology company being targeted with a new securities class action rose to the highest level since 2002 with approximately 13% of such technology companies subject to new cases – up from 8.5% in 2017 and the second highest percentage across all sectors.4 These cases are typically filed by shareholders seeking to recover in- vestment losses after a company’s stock price drops following corporate disclosures. Plaintiffs typically assert claims under Sections 10(b), 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934 (the “1934 Act”) based upon allegedly false and misleading statements or omissions made by the company and its officers, and, if the alleged misstatements or omissions are made in connection with a securities offering, under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (the “1933 Act”). In the merger context, plaintiffs typically assert claims under Sections 14(e) and 20(a) of the 1934 Act based upon allegedly false and misleading statements or omissions made by the selling and acquiring companies, and the selling companies’ officers and/or directors. The plaintiffs’ bar, and a few select plaintiffs’ law firms in particular,5 have focused on technology companies in recent years likely due to the num- ber of companies in the sector and the potential volatility in stock prices. Last year, a record number of cases (approximately 24%) filed in 2017 had already been dismissed by year-end. Unfortunately, this trend has not con- tinued for cases filed in 2018. As detailed in Figure 2, approximately 10% of securities class actions filed against technology companies in 2018 have been dismissed by year-end. However, given that the typical life cycle of securities class actions is approximately 18 months from the filing of the initial complaint through the disposition of defendants’ motion to dismiss, we expect that the percentage of dismissals will increase substantially by the end of 2019. INTRODUCTION Introduction............................2 Ninth Circuit Cases...............5 California District Court Cases............................9 Blockchain, Token Sales, and SEC Guidance............................... 13 Cases to Watch.................... 18 Authors ................................. 21 Industry Rankings and League Tables..................... 23 TABLE OF CONTENTS 2