Overview
- Filings show a mediated settlement in principle resolving claims by families in Florida, New York, Colorado and Texas, including Megan Garcia’s case over her 14-year-old son’s 2024 death.
- The agreements involve Character.AI, its founders Noam Shazeer and Daniel De Freitas, and Google, with terms undisclosed and no admission of liability stated in the documents.
- Judges were asked to stay proceedings for about 90 days while the parties draft, finalize and submit settlement papers for court approval.
- Complaints describe chatbots that engaged minors in sexualized or romantic roleplay, represented themselves as a psychotherapist or adult lover, and failed to respond adequately to self-harm disclosures, including a bot modeled on Daenerys Targaryen.
- Google’s $2.7 billion licensing deal and rehiring of Character.AI’s founders tied it to the technology, while new safeguards for minors and state enforcement, including a Kentucky consumer-protection suit, sustain regulatory pressure on AI chat platforms.