Google and artificial intelligence startup Character Technologies have reached a preliminary settlement to resolve multiple lawsuits accusing the companies of failing to protect minors from harm linked to the Character.AI chatbot, including cases involving teen suicides and exposure to violent or sexual content.
Court filings this week show that the parties in five federal cases across Florida, Texas, Colorado and New York have agreed in principle to end the litigation. The lawsuits allege that Character.AI’s design manipulated young users, worsening mental health conditions and exposing children to inappropriate material.
The proposed deal would also resolve claims against Character.AI co-founders Noam Shazeer and Daniel De Freitas, both of whom later returned to Google. Judges overseeing the cases have been asked to pause proceedings for 90 days while the settlement is finalized.
If completed, the agreement would bring an early close to the litigation, as none of the cases had reached summary judgment and only one had progressed beyond an initial dismissal ruling.
Attorneys for the plaintiffs declined to comment. Representatives for Character.AI also declined, while Google did not respond to requests for comment.
The lawsuits were filed between late 2024 and 2025 by families of minors who allege the chatbot caused or contributed to severe psychological harm. Claims include that the platform created highly realistic interactions, blurred the line between artificial intelligence and human relationships, and failed to implement adequate safeguards for children.
One of the earliest cases was brought by a Florida mother who alleges her 14-year-old son’s mental health rapidly deteriorated after using Character.AI, leading to his death in early 2024. A federal judge later ruled that the chatbot could be treated as a product for purposes of product liability claims.
Other cases allege that minors were exposed to hypersexualized or violent chatbot responses, including messages encouraging harmful behavior. Several suits also challenge Google’s assertion that it bears no responsibility for the platform, pointing to its business ties and licensing arrangements with Character.AI.
In August 2024, Character.AI disclosed that Google paid $2.7 billion for nonexclusive licensing rights to its technology and rehired the chatbot’s founders. Two months later, Character.AI announced plans to introduce age verification measures.
The courts will remain on hold while the parties work to finalize the settlement. If completed, the deal could shape future scrutiny of generative AI platforms and their obligations to protect young users.
