Alphabet Faces Securities Fraud Class Action Over Gemini AI Delays

The complaint, filed by Bleichmar Fonti & Auld LLP, centers on allegations that Alphabet executives misrepresented the progress of Gemini 3.5 Pro. While the company announced in May 2026 that the flagship AI model would debut in June, reports surfaced in July that the project was months behind schedule. Bloomberg revealed that a late-June update to the training data yielded disappointing results, a disclosure that wiped $16.46 off the share price in a single day.

Investors who held Alphabet stock during this period have until December 1, 2026, to petition the court to lead the litigation. The suit, captioned Stewart v. Alphabet Inc., et al., claims violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The firm is currently soliciting information from affected shareholders on a contingency fee basis as the case proceeds through the California federal court.