Alphabet Faces Securities Lawsuit Over Cancelled Gemini 3.5 Pro Launch

The lawsuit, filed in the United States District Court for the Northern District of California, centers on claims that Alphabet executives masked significant development delays while artificially inflating investor expectations. According to the filing, management reaffirmed the imminent June launch during a special investor call on June 3, despite the model struggling with disappointing training data. The deception allegedly unraveled on July 16, 2026, when reports surfaced that the project had fallen months behind schedule. By September 30, 2026, Google confirmed it had abandoned plans to release the model entirely.

Investors who acquired GOOGL or GOOG shares during the specified window may seek compensation for losses, regardless of whether they currently hold the securities. Levi & Korsinsky, LLP is representing the potential class, with a December 1, 2026 deadline set for lead plaintiff applications. The litigation invokes Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, targeting the company and two senior officers for allegedly false statements regarding the AI model's readiness.