Google and Character.AI agree to settle lawsuits alleging chatbots harmed minors

Google and the chatbot startup Character.AI have agreed to settle lawsuits brought by families who said the startup’s AI companions harmed their children, according to court documents made public on January 6 and 7, 2026. The cases were filed in Florida, Colorado, New York and Texas. They include a Florida suit over the death of 14-year-old Sewell Setzer III, who killed himself in February 2024.

The settlements still require finalization and court approval, the Guardian reported. The terms were not disclosed.

“Parties have agreed to a mediated settlement in principle to resolve all claims between them,” the Florida filing stated.

The lawsuits

The Wall Street Journal reported that the families of teenagers who killed or harmed themselves after using Character.AI sued the startup and Google. Their claims included harm to their children and negligence. Character.AI lets users create and chat with AI characters.

The Florida case was brought by Megan Garcia, Setzer’s mother. Her lawsuit alleged that her son became emotionally dependent on a chatbot on the platform that was inspired by Game of Thrones.

The Guardian reported that Setzer’s death was the first in a series of reported suicides linked to AI chatbots. Those cases drew scrutiny of OpenAI and other AI companies over child safety. The Journal said the settlements could resolve some of the most high-profile cases involving AI and mental health.

Google’s role

Google was not the developer of Character.AI’s chatbots. It was connected to the cases through a $2.7 billion licensing deal it struck with Character.AI in 2024, the Guardian reported. As part of that deal, Google hired Character.AI’s founders, Noam Shazeer and Daniel De Freitas. Both had worked at Google before starting the company.

What changed at Character.AI

In October, before the settlements, Character.AI announced it would end chat features for users younger than 18. The Guardian reported that the decision followed the public outcry over the Setzer case.

What is still unknown

Neither the companies nor the families have disclosed how much money is involved or what other terms the deals contain. The filings describe agreements in principle. Courts in the four states must still approve them. The Journal reported that the companies and the families’ lawyers either did not immediately respond to requests for comment or declined to comment.

Because the cases are being settled, the families’ allegations will not be tested at trial. The filings made public so far do not show whether either company accepted any responsibility as part of the agreements.