OpenAI disputes the characterization. A spokesperson said the company has built age-specific protections into its product and is working with states on policies that would apply across the industry. No court has ruled on the claims. Florida filed the first state case against OpenAI in June, and private litigation is also active. A wrongful-death suit filed in August 2025 by the parents of a 16-year-old names OpenAI and CEO Sam Altman. Separately, in Los Angeles, a federal judge signaled that Bill Essayli, who leads the Justice Department's Central District of California office, is likely to be disqualified. Judge J. Michael Seabright ruled in October 2025 that Essayli was serving unlawfully as acting U.S. attorney but let him stay on as first assistant. At a Tuesday hearing, the judge found the government's effort to shield Essayli from an order in a nearly identical Nevada case involving Sigal Chattah underwhelming. A final decision on his role has not been issued.
The multistate action is the first time multiple states have jointly pursued an AI company, so expect other attorneys general to watch closely and possibly follow. Counsel for companies offering consumer chatbots should review safety and age-related marketing claims now, along with consent practices for users under 13 in states with similar laws. In the Essayli matter, the outcome will shape challenges to acting U.S. attorneys in the Central District, where defendants may question prosecutors' authority. The case is also part of a broader fight over keeping interim and acting U.S. attorneys in place beyond the 120-day statutory limit.