The lawsuit alleges that Character.AI “poses a clear and present danger to American youth.” Two families in Texas have filed a new federal product liability lawsuit against Google-backed company Character.AI, accusing it of harming their children. The lawsuit alleges that Character.AI “poses a clear and present danger to American youth causing serious harms to thousands of kids, including suicide, self-mutilation, sexual solicitation, isolation, depression, anxiety, and harm towards others,” according to a complaint filed Monday.