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OpenAI lawsuit lands in Fort Pierce federal court before Judge Aileen Cannon

Ulf Wittrock/Ulf - stock.adobe.com
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234632815
The federal court has not yet ruled on the state's request to remand the case to Highlands County.

A lawsuit filed by Florida Attorney General James Uthmeier against OpenAI is now before the U.S. District Court in Fort Pierce, where U.S. District Judge Aileen Cannon will oversee proceedings after the company removed the case from state court.

The state filed the lawsuit in the Circuit Court for Highlands County, alleging violations of the Florida Deceptive and Unfair Trade Practices Act and Florida common law.

According to court filings, the attorney general's office alleges OpenAI's ChatGPT collected personal information from children younger than 13 without age verification and engaged in deceptive business practices.

The complaint references alleged violations of the federal Children's Online Privacy Protection Act, or COPPA, as part of a state consumer protection claim, but does not assert a federal cause of action.

OpenAI removed the case to federal court, arguing that the lawsuit raises questions of federal law because it references COPPA and that the claims belong in federal court.

In a motion filed July 10, the Florida Department of Legal Affairs asked Cannon to send the case back to Highlands County, arguing the lawsuit is based exclusively on Florida law and therefore does not belong in federal court.

The state also asked the court to award costs and attorney's fees, contending OpenAI lacked an objectively reasonable basis for removing the case.

The filing argues that while the complaint alleges conduct that would violate COPPA, "Plaintiff is not asserting a cause of action under COPPA, is not seeking relief under COPPA, and in fact expressly disclaims any cause of action under federal law."

Instead, the state contends the alleged COPPA violations are one of several theories supporting claims under Florida's consumer protection statute.

The state also argues the complaint alleges numerous other deceptive or unfair practices unrelated to COPPA, including allegations involving safety warnings, product testing, reliability and representations made about ChatGPT.

Cannon, who was appointed to the federal bench by President Donald Trump in 2020, serves in the Southern District of Florida and is based at the federal courthouse in Fort Pierce.

She previously presided over the federal classified documents case involving Trump before dismissing the charges. The dismissal was later appealed.

The federal court has not yet ruled on the state's request to remand the case to Highlands County.

Justin serves as News Director with WQCS and IRSC Public Media.