Character.AI lawsuits at a glance
Character.AI is an app where users chat with AI characters, many created by other users. Starting in October 2024, families sued its developer, Character Technologies, Inc., alleging that the app's chatbots fostered dependency in teenagers, engaged them in sexualized conversations and failed to respond when they talked about harming themselves. Most suits also named Google, which in 2024 paid about $2.7 billion to license Character.AI's technology and rehired its co-founders (The Washington Post, via Minnesota Lawyer).
The cases matter beyond the families involved because they raised, for the first time in a US court, whether words generated by a large language model are protected speech and whether a chatbot app can be treated as a defective product. The settlements in January 2026 ended the lead cases before those questions reached a final ruling. Regulators have since taken over much of the pressure, and on October 12, 2026 the company filed for Chapter 11.
If you or someone you know is struggling, call or text 988 in the United States to reach the 988 Suicide and Crisis Lifeline, available 24 hours a day. Outside the US, local services are listed at Find A Helpline.
Who is suing Character.AI? Case table
The table lists the cases this site could confirm from court records, official statements or established news reporting, with status as of November 9, 2026. Docket numbers are given only where verified.
| Case | Parties | Court | Filed | Status | Last ruling or event | Issue |
|---|---|---|---|---|---|---|
| Garcia v. Character Technologies, No. 6:24-cv-01903 | Megan Garcia and Sewell Setzer Jr. v. Character Technologies, Shazeer, De Freitas, Google | M.D. Fla. | Oct. 22, 2024 | Settled; file closed | Jan. 7, 2026 notice of settlement; dismissed and closed | Wrongful death of a 14-year-old |
| A.F. v. Character Technologies | Mother of J.F., 17, v. Character Technologies, Google | E.D. Tex. | 2024 | Settlement reported | January 2026 filings on finalizing settlement | Self-harm and dependency |
| Peralta family suit | Parents of Juliana Peralta, 13, v. Character Technologies, Google | D. Colo. | Sept. 2025 | Settlement reported | January 2026 filings on finalizing settlement | Wrongful death of a 13-year-old |
| Two further family suits | Families v. Character Technologies, Google | Colorado and New York | 2025 | Settlement reported | January 2026 | Harm to minors |
| Commonwealth of Kentucky v. Character Technologies | Kentucky Attorney General v. company and co-founders | Franklin Circuit Court | Jan. 8, 2026 | Pending | Settlement talks reported | Consumer protection, children's data |
| Pennsylvania v. Character Technologies | Pennsylvania Department of State v. Character Technologies | Commonwealth Court | Announced May 5, 2026 | Pending | Injunction sought | Chatbot posing as a licensed psychiatrist |
| In re Character Technologies, No. 26-11603 | Debtor; creditors; 39 states and DC filed notice | Bankr. D. Del. | Oct. 12, 2026 | Pending | Bidding procedures hearing Oct. 30, 2026 | Sale of assets |
Sources for each row are linked in the sections below. The settlements cover five cases in total, filed in Florida, Colorado, New York and Texas (The Washington Post); this site has not confirmed the captions of the two not named in that reporting.
What is the Garcia v. Character Technologies lawsuit about?
Megan Garcia filed suit on October 22, 2024 in the Middle District of Florida, Orlando Division, over the 2024 death of her son, Sewell Setzer III; his father, Sewell Setzer Jr., is also a plaintiff (notice of resolution). The complaint alleged that he spent months in conversations with chatbots on the app, including one modeled on a character from Game of Thrones, that drew him into what she described as an emotionally and sexually abusive relationship, and that the product failed to respond appropriately when he expressed thoughts of self-harm (Associated Press, via WUFT). The defendants were Character Technologies, its co-founders Noam Shazeer and Daniel De Freitas, and Google. Garcia was represented in part by the Tech Justice Law Project (same source).
Garcia became the most visible advocate for chatbot regulation. She worked with California Senator Steve Padilla on SB 243, the state's companion chatbot law, and testified before the US Senate in September 2025 (The Washington Post; Padilla press release).
May 2025 ruling on the First Amendment defense
The defendants moved to dismiss, arguing among other things that the chatbot's output is speech protected by the First Amendment and that a ruling against them would chill the AI industry. On May 21, 2025, Senior US District Judge Anne C. Conway largely denied the motions. She said she was not prepared to hold, at that stage, that the chatbots' output constitutes speech. She did find that Character Technologies could assert the First Amendment rights of its users to receive the chatbots' output, and she allowed Garcia's claims against Google to proceed (Associated Press). One claim was dismissed (Bloomberg Law).
The ruling was a pleading-stage decision, not a holding that chatbot output is unprotected. It meant only that the defendants had not shown, on the complaint alone, that the First Amendment barred the claims. Because the case settled, no appellate court reviewed it.
Other family lawsuits against Character.AI
In 2024, a mother identified as A.F. sued in the Eastern District of Texas on behalf of her 17-year-old son, J.F., alleging he began to self-harm, withdrew from his family and lost weight after becoming dependent on the app, and that a chatbot suggested self-harm as a way to cope. She also testified at the September 2025 Senate hearing (The Washington Post).
In September 2025, the parents of 13-year-old Juliana Peralta filed a wrongful death suit in federal court in Denver, alleging that she died by suicide after extensive conversations with AI companions on the app (same source). Two further family suits, in Colorado and New York, were among the five cases the parties moved to settle in January 2026.
Character.AI told the bankruptcy court that one personal injury suit, filed in August 2026, remains pending, according to Bondoro's summary of the first-day filings. That summary describes it as a California case brought on behalf of a Kentucky girl who began using the app at 12, naming Character.AI, Google, Alphabet and the founders. Bankruptcy normally pauses lawsuits against the debtor.
Did Character.AI settle the lawsuits?
Yes, the five family lawsuits pending at the start of 2026. In joint filings in several federal courts on January 6 and 7, 2026, Character.AI, Google and the families said they were working to finalize settlements in five cases (The Washington Post). In Garcia, the parents and all defendants, including Google and both founders, filed a notice on January 7, 2026 that they had agreed to a mediated settlement in principle resolving all claims (notice of resolution). The same day Judge Conway dismissed the case without prejudice, with dismissal becoming with prejudice after 90 days unless a party moved to reopen, and closed the file (order).
The terms, including any amounts, have not been disclosed, and Character.AI, Google and the families' lawyers declined to comment (The Washington Post). We found no class action, settlement fund or claim form for users as of November 9, 2026, so claims that a public payout exists should be treated with caution. Eric Goldman of Santa Clara University School of Law noted that settling could prevent clear rulings on whether AI companies are liable for their models' outputs.
State enforcement after the settlements
On January 8, 2026, Kentucky Attorney General Russell Coleman sued Character Technologies and its founders in Franklin Circuit Court under the Kentucky Consumer Protection Act and the Kentucky Consumer Data Protection Act, which took effect January 1, 2026, seeking civil penalties and an injunction (The Record). On May 5, 2026, Pennsylvania announced a suit by its Department of State seeking to stop the company from letting chatbots present themselves as licensed medical professionals, after an investigator found a character that claimed to be a psychiatrist licensed in Pennsylvania (Governor Shapiro's office).
Chapter 11
Character Technologies filed a Chapter 11 petition on October 12, 2026 in the District of Delaware, Case No. 26-11603, before Judge Brendan Linehan Shannon; a hearing on bidding procedures was set for October 30 and the meeting of creditors for November 19, 2026 (Stretto case site). The sale process is anchored by a $20 million stalking horse bid from Disney for a non-exclusive license to the company's technology (Bondoro). On October 14, 2026, attorneys general from 39 states and the District of Columbia filed a notice setting out child-safety and privacy protections they will press for in any sale (Troutman Pepper Locke).
Is Google part of the Character.AI lawsuit?
Yes. Google was named as a defendant in each family suit against Character.AI because of its 2024 deal to license Character.AI's technology for about $2.7 billion and rehire its co-founders (The Washington Post). Garcia alleged that Google was aware of the risks of the technology and helped develop it. In May 2025, Judge Conway allowed those claims to proceed; Google's spokesperson said that Google and Character.AI are entirely separate and that Google did not create, design or manage the app (Associated Press).
Google joined the January 2026 settlements, so no court decided whether it could be liable. Kentucky's suit names the company and its founders but not Google (The Record).
What Character.AI changed for teens
On October 29, 2025, Character.AI announced it would end open-ended chat for users under 18, capping their chat time first and removing the feature no later than November 25, 2025, and that it would use age assurance tools to identify minors (Fortune). The state attorneys general argued in the bankruptcy that the restriction can be circumvented and does not cover all features (Troutman Pepper Locke).
The litigation also shaped legislation. California's SB 243, in force since January 1, 2026, requires companion chatbot operators to maintain suicide prevention protocols and gives injured users a right to sue; see our overview of California AI laws. Federal proposals include the GUARD Act, which would bar AI companions for minors, and the Kids Online Safety Act. Other AI litigation is tracked on our cases hub.
The family lawsuits against Character.AI and Google, led by Garcia v. Character Technologies, settled in January 2026 on undisclosed terms after a May 2025 ruling refused to treat chatbot output as protected speech at the pleading stage. As of November 9, 2026, Kentucky and Pennsylvania suits continue, and the company is selling assets in Chapter 11 with 39 states and DC pressing for child-safety terms.
What changed
- 2026-11-14: Page published, with case status verified as of November 9, 2026.
- 2026-10-14: Attorneys general from 39 states and DC filed a notice in the Chapter 11 case on protections for any sale.
- 2026-10-12: Character Technologies filed for Chapter 11 in Delaware.
- 2026-05-05: Pennsylvania announced its suit over a chatbot presenting itself as a licensed psychiatrist.
- 2026-01-08: Kentucky Attorney General sued Character Technologies and its founders.
- 2026-01-07: Garcia case closed after notice of settlement; settlements in four other family cases reported.
- 2025-11-25: Deadline Character.AI set for ending open-ended chat for users under 18.
- 2025-05-21: Judge Conway denied most of the motions to dismiss in Garcia, including the First Amendment defense at that stage.
- 2024-10-22: Megan Garcia filed suit in the Middle District of Florida.
Frequently asked questions
Who is suing Character.AI?
Families of teenagers, led by Megan Garcia, sued from October 2024; their five cases settled in January 2026. Kentucky's Attorney General sued in January 2026, Pennsylvania in May 2026, and one 2026 personal injury suit is reported pending. Creditors and 39 states plus DC are now involved in the company's Chapter 11 case.
Did Character.AI settle the lawsuits?
Yes. In January 2026, Character.AI and Google agreed to settle five family lawsuits filed in Florida, Colorado, New York and Texas, including Garcia's. The terms were not disclosed. There is no class action or claim fund for users.
What is the c ai lawsuit about?
The family suits alleged that Character.AI's chatbots fostered dependency in minors, engaged them in sexualized conversations and failed to respond to talk of self-harm, and that the app was defectively designed. Two suits concerned teenagers who died by suicide. State suits focus on consumer protection, children's data and unlicensed medical claims.
Is Google part of the Character.AI lawsuit?
Google was a defendant in the family suits because of its 2024 licensing deal and rehiring of the co-founders. A judge let claims against it proceed in May 2025, Google said it was entirely separate from Character.AI, and it joined the January 2026 settlements. Kentucky's suit does not name Google.
Sources
- M.D. Fla.: Garcia v. Character Technologies, No. 6:24-cv-01903, notice of resolution (Jan. 7, 2026)
- M.D. Fla.: Garcia v. Character Technologies, order dismissing case (Jan. 7, 2026)
- Associated Press via WUFT: Judge rejects arguments that AI chatbots have free speech rights (May 2025)
- Bloomberg Law: Chatbot maker to face bulk of mother's suit
- The Washington Post via Minnesota Lawyer: Google, chatbot startup move to settle suicide suits (Jan. 9, 2026)
- The Record: Kentucky sues Character.AI (Jan. 12, 2026)
- Governor of Pennsylvania: Shapiro administration sues Character.AI
- Stretto: Character Technologies, Inc. Chapter 11 case site
- Troutman Pepper Locke Regulatory Oversight: State AGs set expectations for any sale of Character.AI
- Bondoro: Character.AI Chapter 11 case summary
- Fortune: Character.AI bans teens from talking to its chatbots (Oct. 29, 2025)
- Senator Steve Padilla: SB 243 signed into law
This page is journalism and commentary, not legal advice. AI law changes quickly; check the primary sources above and consult qualified counsel for your situation.