Wisconsin joins consumer push in Character.ai bankruptcy

Wisconsin joins multistate action

The Wisconsin Department of Justice announced Friday that it had joined a coalition of state attorneys general in the Character.ai bankruptcy case. The coalition filed a notice seeking consumer protections as the artificial intelligence company moves through bankruptcy.

Wisconsin’s participation makes the state part of a joint legal effort rather than a separate state action. The filing brings the coalition’s consumer-protection concerns into the bankruptcy proceeding, where decisions involving Character.ai will be handled.

The action comes from the Wisconsin Department of Justice, which represents the state’s legal interests. It is not connected to a Wisconsin election, candidate or campaign.

What the filing means

The notice formally places the coalition’s consumer-protection position within the Character.ai case. The bankruptcy proceeding will determine how that filing is considered alongside other matters before the court.

The coalition consists of state attorneys general, but the number of participating states and the other states involved were not identified in Wisconsin’s Friday announcement. The department also did not announce a separate Wisconsin rule or enforcement action against Character.ai.

Next steps in the case

The next developments will come through the bankruptcy process. Further court filings could show what specific protections the coalition requests and how Character.ai responds.

Court action could also clarify whether the coalition seeks conditions affecting consumers during the bankruptcy, after it is resolved, or both. Wisconsin can remain involved through the coalition as the proceeding continues.