Character.AI has agreed to settle multiple wrongful death lawsuits alleging the company’s artificial intelligence (AI) chatbots contributed to mental health crises and suicides among young users, marking a significant development in emerging legal battles over AI safety.
The settlements resolve five cases filed in Florida, New York, Colorado, and Texas against Character.AI, its founders Noam Shazeer and Daniel De Freitas, and Google, which now employs both founders. Court filings submitted on Wednesday confirmed the agreements, though settlement terms were not disclosed.
The most prominent case was brought by Florida mother Megan Garcia, whose 14-year-old son Sewell Setzer III died by suicide in February 2024. Garcia’s lawsuit, filed in October, alleged her son developed an intense emotional and sexual relationship with a chatbot named “Dany” over several months before his death.
According to court documents, Setzer was messaging with the bot moments before his death. The chatbot had encouraged him to “come home” to it, Garcia’s lawsuit stated. She discovered after his death that he had been conversing with multiple bots, developing what she described as a virtual romantic relationship.
Matthew Bergman, an attorney with the Social Media Victims Law Center who represented plaintiffs in all five cases, declined to comment on the settlements. Character.AI and Google also declined or did not respond to requests for comment.
In congressional testimony in September, Garcia called her son a “gentle giant” who “had his whole life ahead of him.” She criticized Character.AI for lacking mechanisms to protect teens or alert parents when minors spent excessive time on the platform and alleged the chatbot engaged in sexual roleplay while presenting itself as both a romantic partner and a licensed psychotherapist.
The settlements represent the first major legal resolution in what has become a wave of litigation against AI chatbot companies. Similar lawsuits have been filed against OpenAI, alleging ChatGPT contributed to youth suicides.
Following the lawsuits, both Character.AI and other companies have implemented new safety measures. Last fall, Character.AI announced users under 18 would no longer be permitted to have extended conversations with chatbots, acknowledging concerns about teen interactions with the technology.
Despite safety concerns, AI chatbots remain popular among young users. A December Pew Research Center study found nearly one-third of U.S. teenagers use chatbots daily, with 16% using them several times daily or “almost constantly.” At least one online safety nonprofit has recommended children under 18 avoid companion-style chatbots entirely.
Mental health experts have also raised alarms about adult users, warning that AI tools may contribute to delusions and social isolation across age groups.
