Alphabet (GOOGL) Concealed Gemini 3.5 Pro Launch Delay Case
$GOOGL investors filed a claim against Alphabet Inc., its CEO, and its CFO for touting that its flagship Gemini 3.5 Pro AI model was "showing great improvements" and would launch in June 2026, while failing to disclose that the model was delivering disappointing training results and that its launch would be significantly delayed.
After Bloomberg reported that Google was "months behind schedule" on delivering Gemini 3.5 Pro because updated training data produced "disappointing" results, Alphabet's Class A stock fell 4.4% on July 16, 2026.
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Case Details:
Alphabet operates through its Google Services, Google Cloud, and Other Bets segments. On May 19, 2026, at its annual Google I/O developer conference, CEO Sundar Pichai announced that Gemini 3.5 Pro, the Company's most powerful flagship AI model, would arrive in June 2026, telling the audience to "give us until next month" and describing the model as "showing great improvements" over prior versions. On June 3, 2026, during a Special Investor Call on AI-driven growth, Pichai reiterated that "we expect Gemini 3.5 Pro will be coming in June."
Unbeknownst to investors, Gemini 3.5 Pro was delivering disappointing training results. On July 16, 2026, Bloomberg reported that Google was "months behind schedule" on the model, noting that "late last month, Google updated the data being used to train Gemini in an attempt to improve its skills, but the results were disappointing." On this news, Alphabet's stock fell 4.4% on unusually heavy volume.
Subsequent events further undercut Defendants' earlier assurances. On July 22, 2026, during the Q2 earnings call, Pichai said Gemini 3.5 Pro was only "currently in testing," with no launch timeline, while pointing to the start of pretraining for Gemini 4. On September 30, 2026, Reuters reported that "Google no longer plans to release Gemini 3.5 Pro."
Based on these events, $GOOGL investors filed a claim against Alphabet, alleging the Company:
Failed to disclose that Gemini 3.5 Pro was delivering disappointing training results
Failed to disclose that the launch of Gemini 3.5 Pro would be significantly delayed
Lacked a reasonable basis for its positive statements about the model's progress and launch timeline
Investors argue that had the truth about Gemini 3.5 Pro's development problems been disclosed, Alphabet's stock would not have traded at artificially inflated prices during the Class Period.