NewsNTech
New York Attorney General Letitia James disclosed a multi-state investigation into Character.AI, prompting a coalition of 40 bipartisan attorneys general to file a notice of interest in the company's bankruptcy proceedings.
The legal filing aims to alert all parties to regulatory issues that must be addressed in any sale or transfer of the debtor's business or assets.
Character.AI announced on Tuesday that it is filing for Chapter 11 bankruptcy and plans to sell certain assets to Disney.
The attorneys general warned that the transfer of the technology poses serious risks to consumer data. They seek to ensure protections are in place for user data sold through the bankruptcy process.
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