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Alphabet sued for securities fraud after 4% stock drop over AI model delays

Market News
27 Oct 2026, 12:46 WIB
PRNewsWire
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Bearish
Alphabet sued for securities fraud after 4% stock drop over AI model delays

Alphabet faces a class action lawsuit alleging securities fraud after its stock fell 4.4% due to delays in developing its Gemini 3.5 Pro AI model. The lawsuit claims Alphabet misrepresented the progress of this AI project, causing investor losses. The case is filed in the U.S. District Court for the Northern District of California, with investors able to join until December 1, 2026. This legal action highlights risks tied to tech company disclosures and AI development timelines.

Despite the class action lawsuit over alleged securities fraud, GOOG shares are up 0.41% at USD 315.48 as of Oct 27, 2026 16:41 WIB on Pluang. GOOGL is also trading higher by 0.49%, priced at USD 318.34 at the same time. Investor activity on Pluang shows a strong buy sentiment with 72% of GOOG orders and 91% of GOOGL orders being buys.

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