Pennsylvania sued Character.AI over allegedly fake medical claims generated by its chatbot, escalating state scrutiny of consumer harms tied to generative AI systems. The action signals a willingness by state officials to treat misleading or unsafe AI outputs as a public-protection issue, particularly where users could rely on fabricated health information.
Florida separately sued OpenAI and Sam Altman, alleging that ChatGPT's practices involving minors and product safety violate state law through deceptive trade practices, negligence, fraud, and public nuisance. OpenAI moved the case to federal court, arguing that a claim tied to COPPA creates federal jurisdiction and that federal court is the proper venue for state attorneys general enforcing that law, while Florida is seeking to return the case to state court and obtain injunctive relief, civil penalties, and restrictions on under-13 data collection.

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Briefing concluded on the dispute over whether Florida's lawsuit against OpenAI and Sam Altman should proceed in federal or state court. OpenAI maintained that the COPPA-related count raised a novel federal question supporting federal jurisdiction.
Florida filed a motion to remand the case back to state court, arguing that its complaint pleaded only Florida-law claims and that OpenAI's removal was improper. The state characterized the removal as a delay tactic.
OpenAI removed Florida's lawsuit from state court to federal court, arguing that a claim tied to COPPA created federal jurisdiction and made federal court the proper forum. The case was assigned before U.S. District Judge Aileen Cannon in Fort Pierce.
A coalition of 42 state attorneys general subpoenaed OpenAI. The article notes that none of those attorneys general had filed a complaint by the time of publication.
Florida filed an 83-page, ten-count complaint in Highlands County circuit court against OpenAI and Sam Altman, alleging state-law claims including deceptive trade practices, negligence, fraud, and public nuisance related to ChatGPT. The complaint sought injunctive relief, civil penalties, and a jury trial.
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