Attorneys general filing in the Character.AI bankruptcy

Filing in Character.AI bankruptcy

Court filing. Press release headline (State attorneys general (coalition)): “Attorney General James Urges Court to Protect Children and Consumers in Character.AI Bankruptcy”

Enforcement action

Allegations. This is a filing in a bankruptcy case. It states the filers’ positions, not findings by the court. Status as of October 31, 2026.

Notice of interest and reservation of rights filed Oct 14, 2026 in the U.S. Bankruptcy Court for the District of Delaware (Chapter 11, Case No. 26-11603-BLS). Florida joined the notice on Oct 20, 2026 (Doc 58). A coalition of states and D.C. objected to the proposed bidding procedures on Oct 23, 2026 (Doc 66), and the U.S. Trustee objected on Oct 27 (Doc 69). Law360 reported that the judge approved the bidding procedures at the Oct 30, 2026 hearing; as of Oct 31 the written order was not on the docket.

Chatbot Laws · verified Oct. 31, 2026

New York and 39 other attorneys general filed a notice in Character Technologies' Chapter 11 case asking that any sale of Character.AI require age verification beyond self-reporting, safeguards on sexual and violent content, responses to self-harm, removal of bots posing as licensed professionals, and privacy protections.

Concerns

Character Technologies, Inc. (the debtor), the bankruptcy court, and any buyer of Character.AI.

What the action covers

Other duties	Notice of interest and reservation of rights asking the court, the company and any buyer to ensure: age verification beyond self-declaration; safeguards against sexual, violent and harmful content; responses to self-harm; removal of bots claiming professional licenses; a privacy program, opt-outs from targeted ads and limits on training on private conversations without consent; and a chance for users to access and delete data before a sale. The AGs reserve the right to seek a consumer privacy ombudsman or object to sale procedures or a plan.

Other duties

Notice of interest and reservation of rights asking the court, the company and any buyer to ensure: age verification beyond self-declaration; safeguards against sexual, violent and harmful content; responses to self-harm; removal of bots claiming professional licenses; a privacy program, opt-outs from targeted ads and limits on training on private conversations without consent; and a chance for users to access and delete data before a sale. The AGs reserve the right to seek a consumer privacy ombudsman or object to sale procedures or a plan.

Who brought it and what it seeks

Filed by	State attorneys general (coalition)
Relief sought	None; a notice filed in a bankruptcy case.

Related laws

Kentucky v. Character TechnologiesLawsuit by the Kentucky Attorney General
Announced Jan. 8, 2026

Sources

New York AG press release, Oct 14, 2026 Supports: Date, requests, coalition members.
Notice of Interest and Reservation of Rights (Doc. 33), Bankr. D. Del. No. 26-11603-BLS Supports: Court, case number, filing date, filers.
Florida joinder to the notice of interest (Doc 58), Bankr. D. Del. No. 26-11603-BLS Supports: Florida joined Oct 20, 2026.
Order shortening notice of the bidding procedures motion (Doc 43) Supports: Oct 30, 2026 hearing.
The Coalition of States' objection to the bidding procedures motion (Doc. 66), Bankr. D. Del. No. 26-11603-BLS Supports: States' Oct 23, 2026 objection.
Character.AI Ch. 11 Auction With Disney Bid Moves Forward (Law360, Oct 30, 2026) Supports: Reported approval of bidding procedures on Oct 30, 2026.