Nessel joins lawsuit seeking consumer protections as chatbot service declares bankruptcy

By: Kyle Davidson

Outlets: Michigan Advance

Published: October 16, 2026

Words: 476

Last Updated: 1 day, 17 hours ago

Body Text Preview

Michigan Attorney General Dana Nessel joined 38 other states and the District of Columbia in a lawsuit focused on privacy and safety concerns after a chatbot service that allows users to converse and roleplay with AI characters filed for bankruptcy.

The platform, Character.AI, announced its bankruptcy filing on Monday, stating that it would sell $20 million in assets to Disney.

Founded in 2021, the company has faced legal …

Create a free account to access this story and more

Join Plucky Wire to access full stories, collaborate with newsrooms, and discover content from networks around the world.

About

FAQ

Email Us