Company: Alphabet, Inc.
Class Period: April 23, 2018 — October 7, 2018
Court: U.S.D.C. – Northern District of California
Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Alphabet, Inc. (NASDAQ: GOOG) (“Alphabet” or the “Company”) on behalf of purchasers of the Company’s common stock between April 23, 2018 and October 7, 2018, inclusive (the “Class Period”).
Alphabet is the parent company of Google Inc. (“Google”). Through Google, Alphabet operates a social networking website called “Google+” that allows people to communicate with their family, friends, and coworkers. The shareholder complaint alleges that, between 2015 and March 2018, a software glitch in the Google+ website permitted outside developers to access the personal profile data of Google+ members who had not opted to permit their data to be shared publicly.
The shareholder complaint further alleges that defendants made materially false and misleading statements during the Class Period, and failed to disclose to investors that: (i) the Company’s security measures had failed recently and massively, as Google had exposed the private data of hundreds of thousands of users of Google+ to third parties; (ii) damage to the Company’s reputation and operating results and loss of customers from this failure of the Company’s security measures were imminent and inevitable; (iii) the Company’s security protections did not shield personal user data against theft and security breaches; and (iv) the Company’s security measures had been breached due to employee error, malfeasance, system errors or vulnerabilities.
On October 8, 2018, The Wall Street Journal reported that Google had discovered a software glitch in its Google+ social network which had exposed users’ personal data to third parties, but “opted not to disclose the issue . . . in part because of fears that doing so would draw regulatory scrutiny and cause reputational damage.” Following this news, Google’s stock price fell $67.75 per share, or 5.9%, over the following two trading sessions, to close at $1,081.22 per share on October 10, 2018.
Alphabet stockholders who purchased their securities during or prior to the Class Period are encouraged to contact Kaskela Law LLC at (888) 715 – 1740 to discuss their important legal rights and options, or complete the information form on this page.