b'Consumer Non-Cyclical SectorCore Federal FilingsBiotechnology 87Pharmaceuticals 13HealthcareOther (Consumer Non-Cyclical) 67 6751 14 33 62 18724 56 19 5214 35 1614 18 152515 11 15Average 1997-2019 2018 2019 2020Figure 1:1Sectors and subsectors are based on the Bloomberg Industry Classification System.2The Other (Consumer Non-Cyclical) category is a grouping primarily encompassing the Agriculture, Beverage, Commercial Services, and Food subsectors.3 Average figures may not sum due to rounding.firms have been dismissed more frequently than otheractually decreased for the first time in several years law firms.5 Not surprisingly, there were a significantfrom 62 securities class actions in 2019 to 52 actions number of class actions filings related to the COVID-19in 2020. Favorable performance and market condi-pandemici.e., filings against companies that weretions for life sciences and healthcare companies likely particularly negatively impacted by the pandemic orcontributed to this drop, which was primarily driven by a companies involved in the development of productsdecrease (from 33 to 19 actions) in class actions against (e.g., therapeutics, vaccines, and testing products) topharmaceutical companies. Note, however, that the address COVID-19.6 number of class actions against biotechnology compa-While the overall number of cases in all industries nies increased from 13 actions in 2019 to 18 actions in declined, as in past years, the Consumer Non-2020. Cyclical sector, primarily composed of life sciences As we reported in last years Year in Review, 2019 saw and healthcare companies, once again had by far thea significant uptick40%from 2018 in the filing of greatest number of securities class action filings incases alleging 1933 Act claims in state courts, following 2020 as compared to other sectors.7 This is likely duethe U.S. Supreme Courts March 2018 decision in Cyan to the inherently volatile nature of the stock prices ofthat class actions under the 1933 Act can be brought life sciences and healthcare companies, and the manyin state court and are not removable to federal court. event-driven disclosures made by the companies.In 2020, however, the total number of 1933 Act filings However, as depicted in Figure 1 above, the number ofdropped dramatically (from 66 in 2019 to 33 actions), filings against life sciences and healthcare companiesdespite the fact that the number of traditional initial 5 See Cornerstone Report, at 34.6Cornerstone Report, at 7.7 See Cornerstone Report, at 32 (depicting 67 filings against companies in the Consumer Non-Cyclical industry, followed by 29 filings against companies in each of the Technology and Consumer Cyclical industries).5'