All persons who purchased or otherwise acquired Class A (GOOGL) and/or Class C stock (GOOG) of Alphabet Inc., between April 23, 2018 and April 30, 2019, pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Class A (GOOGL) and/or Class C stock (GOOG) of Alphabet Inc.

The complaint alleges that the defendants, Alphabet Inc. and its senior executives, made misleading statements related to data security and management integrity. It is claimed that they were aware of a software glitch within the Google+ social media network that exposed private personal data of millions of Google+ users to third-parties. This glitch, known as the “Three-Year Bug,” and other systemic vulnerabilities, were not disclosed to investors or the public for months, despite the significance of data security to Alphabet’s operations and its public statements emphasizing the importance of privacy and security. The Wall Street Journal’s reporting on these issues led to government investigations, Congressional hearings, and significant negative impacts on investor trust and Alphabet’s stock price. The complaint highlights the contradiction between Alphabet’s public commitment to data security and the actual handling of the discovered vulnerabilities, alleging that this discrepancy constituted misleading conduct towards investors.

Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Google exposed the private data of hundreds of thousands of Google+ social network users; (2) Google actively concealed this data breach for several months; (3) this conduct violated Google’s purported data privacy and security policies; (4) discovery of the foregoing conduct could foreseeably subject Alphabet to heightened regulatory scrutiny; and (5) as a result, Alphabet’s public statements were materially false and misleading at all relevant times.

Class action on behalf of all persons and entities other than Defendants who purchased or otherwise acquired Class A (GOOGL) and/or Class C stock (GOOG) of Alphabet Inc., between April 23, 2018 and April 30, 2019, pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Lead Plaintiff filed a consolidated amended Complaint on April 26, 2019. Defendants filed a Motion to Dismiss the consolidated amended Complaint on May 31, 2019. On February 5, 2020, the Court issued an Order granting Defendants’ Motion to Dismiss. Plaintiff did not amend the Complaint, and on March 13, 2020, the Court entered judgment in favor of Defendants and against Plaintiff. On April 9, Lead Plaintiff filed a notice appealing the Court’s Dismissal Order. On June 16, 2021, the Court of Appeals affirmed in part and reversed in part the District Court’s Dismissal Order, vacated the District Court’s Judgment, and remanded for further proceedings.