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Parents aim to pierce 'corporate veil,' hold Character.AI founders liable for US harms

By Amy Miller ( April 18, 2025, 23:53 GMT | Comment) -- Families suing Character Technologies in Texas and Florida are trying to hold the artificial intelligence company’s co-founders liable for harming children by pursuing a strategy often used against opaque shell companies, known as “piercing the corporate veil,” or alter-ego theory. The “corporate veil” ordinarily protects individuals from personal liability for the debts and obligations of a corporation. But the US Federal Trade Commission during the Biden Administration disregarded that “veil” to pursue consumer protection claims against executives at companies such as Amazon. Now, parents are trying a similar approach in their litigation against Character.AIFamilies suing Character Technologies in Texas and Florida are trying to hold the artificial intelligence company’s co-founders liable for harming children by pursuing a strategy often used against opaque shell companies, known as “piercing the corporate veil,” or alter-ego theory....

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