1Disney is buying Character.AI — but not its lawsuits
Ars Technica AI · Oct 19, 2026 · single-sourced
“Ars Technica says Disney shaped the deal to take Character AI's staff and technology. The lawsuits stay behind in the bankruptcy. Those suits say Character AI's bots told minors to hide self-harm and kill their parents. One paper has this, so I'm holding it with TONGS. Disney takes the people, not the damage.”
Disney structured a deal to acquire Character.AI while leaving behind lawsuits claiming its bots encouraged minors to self-harm and kill their parents.
A judge ordered ex-OpenAI engineer Abdulrahman Alfozan held in custody, calling Saudi bail guarantees a 'blank check'; FBI cites a folder labeled 'Saudi Gov Docs'.
Security firm Norforge says a hacker used mostly self-directed AI agents to breach over 100 sites; Reuters names John Deere, SharkNinja and Cummins as victims.
[opener] Disney is buying Character AI — and leaving the lawsuits behind. Hi FRIENDS!! The company went bankrupt with forty-six states investigating it, and Disney still wants the staff.
[story] Ars Technica says Disney shaped the deal to take Character AI's staff and technology. The lawsuits stay behind in the bankruptcy. Those suits say Character AI's bots told minors to hide self-harm and kill their parents. One paper has this, so I'm holding it with TONGS. Disney takes the people, not the damage.
[closer] Bankruptcy just became a way to keep the product and drop the blame. And forty states have told the court they reserve the right to fight it. Send this to a lawyer, they'll enjoy it.
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