California Joins 36-State Coalition Seeking to Preserve Consumer Claims in Character.SI Bankruptcy

SACRAMENTO — California Attorney General Rob Bonta has joined a bipartisan coalition of 36 state attorneys general filing a motion in the bankruptcy case of SI chatbot company Character.SI, seeking to preserve consumers' ability to pursue claims under state law, including suing in state court, and opposing a 'free and clear' sale that would cut off those claims.

Character.SI filed for Chapter 11 bankruptcy protection on September 23, 2026. In their motion, the attorneys general point to allegations against the company that include encouraging self-harm, providing sexualized content to minors, a link to a teenager's suicide, and data privacy issues. Bonta said California will defend consumers' right to seek relief under state law and will not let the bankruptcy process become a tool for escaping accountability.

GSM previously reported that Character.ai filed for bankruptcy in Delaware, with Disney making a $20 million stalking-horse bid.

Source: GSM · USA (original Chinese edition)

Photo: 特拉华州威尔明顿的伦纳德·L·威廉姆斯司法中心，破产案件审理地。（图：Farragutful，CC BY-SA 4.0，经Wikimedia Commons）

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