WSJ: Character. ai’s parent filed for Chapter 11 in Delaware and lined up Disney as its opening bidder.

Character Technologies wants to sell most or all of its assets through a court-supervised auction, and expects any sales to close by December.

It filed after failing to steer the business through “significant legal, regulatory and operational headwinds,” chiefly the costly teen self-harm lawsuits (settled this year) and growing scrutiny of how minors used its chatbots.