https://www.live-feeds.com/feed/disney-asked-character-ai-to-go-bankrupt-for-a-get-out-of-lawsuits-cardContinuously updated, source-cited coverage. https://www.live-feeds.com/feed/disney-asked-character-ai-to-go-bankrupt-for-a-get-out-of-lawsuits-cardhttps://www.live-feeds.com/feed/disney-asked-character-ai-to-go-bankrupt-for-a-get-out-of-lawsuits-card#u150072Fri, 23 Oct 2026 14:20:16 +0000AI companion startup Character.AI has filed for Chapter 11 bankruptcy. The filing follows mounting operating costs and ongoing litigation, including lawsuits alleging ties to teen suicides. As part of the proceedings, the company has agreed to sell some of its assets to Disney for $20 million. Additionally, Disney has extended an $180 million package to offer a soft landing to the staff at the bankrupt firm, and agreed to hire the majority of Character.AI's workforce.Why it mattersCharacter.AI faced intense scrutiny and legal pressure regarding its AI companions and alleged connections to