Disney Asked Character.AI to Go Bankrupt for a Get-Out-of-Lawsuits Card
The company, known for letting users create and chat with AI-generated characters, filed for bankruptcy protection in Delaware on October 12, 2026. The filing came after lawsuits and investigations concerning chatbot safety, particularly allegations involving minors. Character.AI says the court-supervised process is intended to maximize value and provide a chance for its platform to continue […]