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Google and Character.AI Reach Settlements in Teen Chatbot Harm Lawsuits

Court filings describe agreements in principle that still require judicial approval, with terms not disclosed.

Overview

  • The settlements cover multiple family lawsuits in Florida, Colorado, Texas and New York, including Megan Garcia’s case over the death of her 14-year-old son, Sewell Setzer III.
  • Defendants include Character.AI, co-founders Noam Shazeer and Daniel de Freitas, and Google, which rehired the founders under a licensing deal reported at $2.7 billion.
  • Parties asked courts to stay proceedings while they draft and execute formal settlement documents, and no liability admissions appear in the filings.
  • A federal judge in Florida previously rejected an early bid to dismiss the Garcia case on First Amendment grounds, allowing key claims to proceed.
  • Character.AI had already introduced guardrails for young users, later barring minors from open-ended character chats, as these cases raised broader questions about AI safety and industry accountability.