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Google, Character.AI Agree to Settle US Lawsuit Over Teen’s Suicide

January 8, 2026
in Web3
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In short

Google and Character.AI agreed to settle a landmark lawsuit filed by a Florida mom who alleged the startup’s chatbot led to her son’s suicide in February 2024.
The case was one of many first U.S. lawsuits holding AI corporations accountable for alleged psychological hurt to minors.
The settlement comes after Character.AI banned youngsters from open-ended chatting in October.

A mom’s lawsuit accusing an AI chatbot of inflicting her son psychological misery that led to his dying by suicide in Florida almost two years in the past has been settled.

The events filed a discover of decision within the U.S. District Courtroom for the Center District of Florida, saying they reached a “mediated settlement in precept” to resolve all claims between Megan Garcia, Sewell Setzer Jr., and defendants Character Applied sciences Inc., co-founders Noam Shazeer and Daniel De Freitas Adiwarsana, and Google LLC.

“Globally, this case marks a shift from debating whether or not AI causes hurt to asking who’s accountable when hurt was foreseeable,” Even Alex Chandra, a associate at IGNOS Legislation Alliance, instructed Decrypt. “ I see it extra as an AI bias ‘encouraging’ unhealthy behaviour.”

Each requested the court docket keep proceedings for 90 days whereas they draft, finalize, and execute formal settlement paperwork. Phrases of the settlement weren’t disclosed.



Megan Garcia filed the lawsuit after the dying of her son Sewell Setzer III in 2024, who died by suicide after spending months creating an intense emotional attachment to a Character.AI chatbot modeled after “Recreation of Thrones” character Daenerys Targaryen.

On his remaining day, Sewell confessed suicidal ideas to the bot, writing, “I take into consideration killing myself generally,” to which the chatbot responded, “I will not allow you to harm your self, or go away me. I’d die if I misplaced you.” 

When Sewell instructed the bot he may “come house proper now,” it replied, “Please do, my candy king.” 

Minutes later, he fatally shot himself along with his stepfather’s handgun.

Ishita Sharma, managing associate at Fathom Authorized, instructed Decrypt the settlement is an indication AI corporations “could also be held accountable for foreseeable harms, significantly the place minors are concerned.”

Sharma additionally stated the settlement “fails to make clear legal responsibility requirements for AI-driven psychological hurt and does little to construct clear precedent, doubtlessly encouraging quiet settlements over substantive authorized scrutiny.”

Garcia’s criticism alleged Character.AI’s know-how was “harmful and untested” and designed to “trick prospects into handing over their most personal ideas and emotions,” utilizing addictive design options to extend engagement and steering customers towards intimate conversations with out correct safeguards for minors.

Within the aftermath of the case final October, Character.AI introduced it might ban youngsters from open-ended chat, ending a core characteristic after receiving “studies and suggestions from regulators, security consultants, and oldsters.” 

Character.AI’s co-founders, each former Google AI researchers, returned to the tech large in 2024 by means of a licensing deal that gave Google entry to the startup’s underlying AI fashions.

The settlement comes amid mounting issues about AI chatbots and their interactions with weak customers.

Large OpenAI disclosed in October that roughly 1.2 million of its 800 million weekly ChatGPT customers talk about suicide weekly on its platform. 

The scrutiny heightened in December, when the property of an 83-year-old Connecticut girl sued OpenAI and Microsoft, alleging ChatGPT validated delusional beliefs that preceded a murder-suicide, marking the primary case to hyperlink an AI system to a murder. 

Nonetheless, the corporate is urgent on. It has since launched ChatGPT Well being, a characteristic that permits customers to attach their medical information and wellness information, a transfer that’s drawing criticism from privateness advocates over the dealing with of delicate well being data.

Decrypt has reached out to Google and Character.AI for additional feedback.

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Tags: AgreeCharacter.AIGooglelawsuitSettleSuicideTeens
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