Alphabet Faces Class Action Over Gemini 3.5 Pro Development Delays

The complaint, Stewart v. Alphabet Inc. et al., filed in the U.S. District Court for the Northern District of California, centers on claims that Alphabet misrepresented its progress on the Gemini 3.5 Pro model. While the company initially announced a June 2026 launch for the AI offering, Bloomberg reported in mid-July that the project was months behind schedule following disappointing results from updated training data. This revelation caused Alphabet’s Class A shares to drop from $370.92 to $354.46 on July 16, 2026.

Bleichmar Fonti & Auld LLP, the law firm representing the plaintiffs, asserts that these actions violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Investors who held Alphabet stock during this period have until December 1, 2026, to petition the court for lead plaintiff status. The firm is managing the case on a contingency fee basis, with no out-of-pocket costs for participating shareholders.