In a recent decision challenging Google’s Gemini AI features, a California federal court held that allegations concerning an AI tool’s capabilities, without facts showing actual access or use of plaintiffs’ data, were insufficient to demonstrate the “concrete” harm required for Article III standing.  Thele v. Google LLC, 2026 WL 1970746 (N.D. Cal. July 7, 2026).  The court’s reasoning reflects a principle with potentially broad application: alleging what an AI tool could do is not enough to establish an Article III injury—plaintiffs must plausibly allege what it actually did.    

The plaintiffs claimed that Google historically required users to opt in to Gemini as a “Smart” feature, but later enabled Gemini for Gmail, Chat, and Meet by default unless they affirmatively disabled the setting.  According to the complaint, Gemini therefore tracked users’ “private communications” without their knowledge or consent and “could have” gleaned sensitive “financial, medical, employment” or other information.  Based on those allegations, plaintiffs asserted claims under the California Invasion of Privacy Act, the California Computer Data Access and Fraud Act, the Stored Communications Act, among others.

The Court concluded that the plaintiffs “have not met their burden to demonstrate how they have been ‘concretely harmed.’”  Although the complaint identified categories of sensitive information that Gemini “could have” accessed, the plaintiffs did “not identify what – if any – personal data Gemini actually accessed or used.”  Instead, they claimed only that Gemini “could be used to track their data,” which the Court held was “insufficient to allege an injury in fact” required for Article III standing.  The Court also held that the plaintiffs lacked standing to seek injunctive relief because they had not alleged a “real or immediate threat” of future harm, particularly where they could “eliminate any risk of future harm by disabling the feature they say puts them at risk.”

The decision underscores that allegations about what an AI tool could do, without allegations about what it actually did, may be insufficient to establish Article III standing.  The decision may prove particularly significant as courts confront a growing wave of AI-related privacy claims.

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Photo of Vivian Wen Vivian Wen

Yuxin (Vivian) Wen is an associate in the firm’s New York office. She is a member of the Litigation and Investigations Practice group and focuses on commercial litigation, copyright and trademark litigation, class actions, international arbitration, and white collar defense and investigations.

In…

Yuxin (Vivian) Wen is an associate in the firm’s New York office. She is a member of the Litigation and Investigations Practice group and focuses on commercial litigation, copyright and trademark litigation, class actions, international arbitration, and white collar defense and investigations.

In her pro bono work, Vivian has enjoyed representing clients in a wide range of matters, including an independent journalist in trademark litigation, a professional photographer in a copyright dispute, a criminal defendant in a commutation of sentence application, and individuals seeking various forms of immigration reliefs.

Photo of Matthew Verdin Matthew Verdin

Matthew Verdin focuses on defending clients in the technology and financial services sectors. He has a strong record of delivering wins on behalf of clients in class actions and complex litigation, particularly in privacy and consumer protection lawsuits. Matthew is particularly successful in…

Matthew Verdin focuses on defending clients in the technology and financial services sectors. He has a strong record of delivering wins on behalf of clients in class actions and complex litigation, particularly in privacy and consumer protection lawsuits. Matthew is particularly successful in securing dismissals at the pleadings stage. For example, he won dismissal at the pleadings stage of over a dozen wiretapping class actions involving the alleged use of website analytics tools to collect data about users’ website visits. He also advises companies on managing litigation risk under federal and state wiretapping laws.

Matthew is also dedicated to pro bono legal services. Recently, he helped a domestic violence survivor win a case in the California Court of Appeal. Matthew’s oral argument led to the court ordering renewal of his client’s restraining order just one day later.

Photo of Kathryn Cahoy Kathryn Cahoy

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology…

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology, entertainment, consumer products, and financial services. Kate also plays a key role in the firm’s mass arbitration defense practice. She regularly advises companies on the risks associated with mass arbitration and has a proven track record of successfully defending clients against these challenges.

Leveraging her success in class action litigation and arbitration, Kate helps clients develop strategic and innovative solutions to their most challenging legal issues. She has extensive experience litigating cases brought under California’s Section 17200 and other consumer protection, competition, and privacy laws, including the Sherman Act, California Consumer Privacy Act (CCPA), California Invasion of Privacy Act (CIPA), Wiretap Act, Stored Communications Act, Children’s Online Privacy Protection Act (COPPA), Video Privacy Protection Act (VPPA), along with common law and constitutional rights of privacy, among others.

Kate’s exceptional legal work has earned widespread recognition. The Daily Journal named her successful defense of Meta and Microsoft cases described below as among its Top Verdicts, recognizing some of the largest and most impactful verdicts in California.

Recent Successes:

Represented Meta (formerly Facebook) in a putative nationwide advertiser class action alleging violations under the California Unfair Competition Law (UCL) related to charges from allegedly “fake” accounts. Successfully narrowed claims at the pleadings stage, defeated class certification, opposed a Rule 23(f) petition, won summary judgment, and defended the victory on appeal to the Ninth Circuit. (Daily Journal, Top Verdicts of 2021. Law.com recognized Kate with a Litigator of the Week Shoutout.
Defeated a landmark class action lawsuit against Microsoft and OpenAI contending that the defendants scraped data from the internet for training generative AI services and incorporated data from users’ prompts, allegedly in violation of CIPA, the Computer Fraud and Abuse Act (CFAA), and other privacy and consumer protection laws. (Daily Journal, Top Verdicts of 2024.)

Kate regularly contributes to the firm’s blog, Inside Class Actions, and was recently featured in a Litigation Daily interview titled “Where Privacy Laws and Litigation Trends Collide.” In recognition of her achievements in privacy and antitrust class action litigation, the Daily Journal named her as one of their Top Antitrust Lawyers (2024), Top Cyber Lawyers (2022), and Top Women Lawyers in California (2026). Additionally, she received the Women of Influence award from the Silicon Valley Business Journal, was recognized by the Daily Journal as a Top Attorney Under 40, and also was named to Bloomberg Law’s They’ve Got Next: The 40 Under 40 list.