AI company has faced multiple lawsuits from families who claimed their teenage children died by suicide or harmed themselves after using its platform.

Character.ai said it has filed for Chapter 11 bankruptcy protection, with its chief executive attributing the chatbot provider’s financial problems to “significant legal, regulatory and operational headwinds.”

The company said it will continue operating as it seeks to sell its business, and added that The Walt Disney Co. has agreed to pay $20 million for a non-exclusive, perpetual license to Character.ai’s intellectual property.