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A Lawsuit Blames ‘Defective’ TikTok Algorithm for Children’s Deaths
Christian Hetrick
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Social media companies are often accused of hosting harmful content, but it’s very hard to successfully sue them. A federal law known as Section 230 largely protects the platforms from legal responsibility for hate speech, slander and misinformation created by its users.
But a new lawsuit blaming TikTok for the deaths of two children is taking a different approach. Rather than accuse the company of failing to moderate content, the complaint claims TikTok is a dangerous and defective product.
The suit, filed last week in Los Angeles County Superior Court, takes aim at the video sharing app’s recommendation algorithm, alleging that it served up videos depicting the deadly “Blackout Challenge,” in which people choke themselves to achieve a euphoric feeling. Two children—8-year-old Lalani Erika Walton and 9-year-old Arriani Jaileen Arroyo—died last year after allegedly trying the "blackout challenge," the suit said.
“We believe that there is a fundamental flaw in the design of the algorithm that directs these children to this horrific thing,” Matthew Bergman, the lawyer for the children's families, told dot.LA. Bergman is the founding attorney for the Social Media Victims Law Center, a self-described legal resource for parents of children harmed by social media.
Section 230 has long been an obstacle for social media’s opponents. "You can't sue Facebook. You have no recourse,” U.S. Sen. Richard Blumenthal, a Democrat from Connecticut, said last year after Facebook whistleblower Frances Haugen detailed Instagram’s toxic effect on young girls. The federal law’s defenders contend that Section 230 is what allows websites like YouTube and Craigslist to host user-generated content. It would be infeasible for companies to block all the objectionable posts from their massive user bases, the argument goes.
The strategy of bypassing that debate altogether by focusing on apps’ designs and features has gained steam lately. In May, an appellate panel ruled that Santa Monica-based Snap can’t dodge a lawsuit alleging that a Snapchat speed filter—which superimposed users’ speeds on top of photos and videos—played a role in a deadly car crash at 113 mph. The judges said Section 230 didn’t apply to the case because the lawsuit did not seek to hold Snap liable as a publisher.
Similarly, California lawmakers are advancing a bill that would leave social media companies open to lawsuits alleging their apps have addicted children. Proponents of the bill take issue with product features such as likes, comments and push notifications that grab users’ attention, with the ultimate goal of showing them ads.
“A product liability claim is separate and distinct from suing a company for posting third party content or publishing third party content, which we know has been unfruitful in many ways, for many years, as a vehicle to hold these companies accountable,” Bergman said.
Representatives for Culver City-based TikTok did not return a request for comment. In a previous statement about another TikTok user’s death, a company spokesperson noted the “disturbing” blackout challenge predates TikTok, pointing to a 2008 warning from the Centers for Disease Control and Prevention about deadly choking games. The spokesperson claimed the challenge “has never been a TikTok trend.” The app currently doesn’t produce any search results for “blackout challenge” or a related hashtag.
It’s too early to tell whether product liability claims will be more successful against social media companies. “We're realistic here. This is a long fight,” Bergman said. In the meantime, his suit against TikTok takes pains to note what it is not about: the users posting the dangerous challenge videos.
“Plaintiffs are not alleging that TikTok is liable for what third parties said or did [on the platform],” the suit said. “but for what TikTok did or did not do.”
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Christian Hetrick
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
What Happens When So Many Big Events Get Canceled? 'There's No Precedent For This'
01:07 PM | March 16, 2020
With virtually every event nationwide now canceled for at least the next two months, Cameron Argetsinger, who specializes in insurance law, says his phone has been ringing nonstop.
"There's no precedent for this," he told dot.LA.
The Centers for Disease Control recommended Sunday that events with more than 50 attendees be canceled or postponed for the next two months. Last week, Gov. Gavin Newsom banned gatherings of 250 through at least March. Mayor Eric Garcetti ordered restaurants, bars, nightclubs and gyms closed last night.
Most conference organizers did not wait for official orders, with Southern California events such as Coachella, E3, and The Milken Global Conference already delayed or canceled.
Argetsinger, Special Counsel at the Washington D.C. based firm, Kelley Drye & Warren LLP, has been getting calls from conference organizers desperate to recoup losses from events they have to cancel or postpone because of coronavirus. He says most big conferences buy cancellation insurance, but the majority of policies have exclusions for communicable disease. Policyholders can choose to pay slightly higher premiums to be covered against disease, though many do not carry the extra coverage, including South By Southwest, which will now reportedly be on the hook for tens of millions dollars.
"The devil is in the details," said Argetsinger.
For those trying to file claims, Argetsinger recommends policyholders be as thorough as possible and document losses meticulously.
"Event organizers who have bought cancellation policies should know that they may be facing an uphill battle in trying to obtain coverage from insurers who are overwhelmed by the sheer volume of cancellation claims and who are trying to limit their own losses," Argetsinger said. "It is critical for policyholders to understand the terms of their policies and to comply with all of the requirements that the policy places on them."
He says it helps that governments are increasingly banning gatherings, which makes it hard to argue that events could proceed.
"That would strengthen the claim," he said.
Postponing the Milken Global Conference
On March 7th, executives at the Milken Institute postponed the 23rd annual Global Conference to July. The event, which attracts 4,000 attendees from more than 70 countries to Beverly Hills normally takes over the entire Beverly Hilton – from the same massive ballroom where the Golden Globes are held to dozens of smaller rooms. It is likely not possible to replicate the same thing this summer, though the institute is currently in negotiations with the hotel about how much of the conference can take place there and would only say that it would be happening "somewhere in Los Angeles."
"There is no guarantee of how things are going to look in July, but all of the best advice we were getting in terms of monitoring the track of the virus was that what we've seen in Asia was there was a peak over a period of about two months," said Katherine O'Reilly, Milken's Executive Director of Business and Development.
Milken has a full-time staff of about 25 working on the conference year round and another 100 who pitch in once the date gets closer, all of whom will now have to turn their attention to trying to reschedule panels and add new ones to reflect how the world has changed.
"It's a very heavy lift logistically," said O'Reilly.
O'Reilly didn't know the financial toll of postponing the conference and what might be covered by insurance, but if the conference is ultimately canceled or scaled back, it would be a major blow for Milken since the conference – with ticket prices in the thousands of dollars and lucrative sponsorships – covers much of the Institute's operating budget.
"Our expectation is that the sponsors are sticking with us," said O'Reilly. "For a lot of people this conference is important to their business, so they want to see it continue."
The wider economic impact of the conference not taking place totals at least $19 million, PredictHQ, a provider of event data, told dot.LA. It says all told, billions of dollars will be lost from the tens of thousands of events not taking place around the world.From Your Site Articles
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Ben Bergman
Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.
https://twitter.com/thebenbergman
ben@dot.la
Swipe Less, Know More, Build Faster: LA’s AI Push
10:25 AM | November 07, 2025
🔦 Spotlight
Happy Friday LA!
This week was about AI moving from side feature to core product strategy. Tinder is testing an opt-in “Chemistry” flow that learns your interests with permission, including signals from your camera roll, to propose fewer, higher quality matches. Snap is wiring Perplexity’s conversational, source linked answers directly into Snapchat. And Rivian spun out Mind Robotics to take the industrial AI it built for its own lines to a broader market.
Tinder Bets on AI for Quality Over Quantity
Tinder is piloting Chemistry, an opt-in experience that starts with a short Q&A and, with permission, analyzes cues from your camera roll to build a richer picture of what you like. The aim is to cut through swipe fatigue by presenting a smaller set of high intent matches each day, first in New Zealand and Australia, as part of Match Group’s larger 2026 product overhaul. The pitch is relevance and control, with phased rollout and consent front and center; if engagement lifts, expect tighter loops between real world signals and match recommendations.
Snap Brings Perplexity Answers into Snapchat
Snap struck a deal with Perplexity to deliver conversational, source linked results inside Snapchat starting in early 2026, backed by a one year cash and equity package reportedly worth about 400 million dollars. Ask a question where you already spend time and get a cited answer without hopping to a mobile browser, with Snap emphasizing that Snapchat data will not train Perplexity’s models. The announcement landed alongside improving fundamentals, signaling Snap’s plan to make trustworthy answers feel native to social habits rather than a separate destination.
Rivian Spins Out Mind Robotics
Rivian formed Mind Robotics to productize the software and systems that coordinate its own manufacturing, raising roughly 110 to 115 million dollars led by Eclipse. The goal is to sell factory floor intelligence beyond vehicles, including adaptive quality control, smarter material handling, and autonomous workflows that reduce downtime. With Rivian’s headquarters in Irvine and a growing regional robotics talent base, this puts Southern California on the map for next generation industrial automation tied to the EV supply chain.
Bottom line
LA’s tech scene is pushing AI toward measurable outcomes: better match quality, faster answers with clear citations, and more efficient production. Keep an eye on the unsexy details, including privacy choices and user consent, data boundaries between partners, and how each team turns these features into monetization. That is where this week’s announcements will turn into lasting advantage.
🤝 Venture Deals
LA Companies
- Evotrex exited stealth with a $16M Pre-A round led by Xstar Capital, with Unity Ventures, Kylinhall Partners, Vision Plus Capital, and founders of Anker Innovations participating; the capital will expand engineering and speed commercialization of its first product. The California startup plans to debut what it calls the world’s first power-generating RV trailer at CES 2026, designed to provide off-grid power and help extend EV range while towing. - learn more
- Zest AI, which provides AI-driven credit underwriting and lending intelligence for banks and credit unions, closed an oversubscribed, customer-led financing round from SchoolsFirst, Members 1st, ORNL, and Truliant credit unions, with participation from Citi Ventures. The company says the round came at a higher valuation than its prior growth raise and will fund more automation across the borrower journey and a broader rollout of LuLu, its generative AI lending-intelligence platform. - learn more
- Estate Media, the social first real estate media startup co-founded by “Million Dollar Listing” star Josh Flagg, says it has surpassed $6M in revenue and closed a $1M seed round, bringing total funding to $2.65M. New investors include Tinder co-founder Justin Mateen and real estate and media figures such as Samir Mezrahi (“Zillow Gone Wild”), Tracy Tutor, and Hudson Advisory, which the company says positions it for profitability and further growth. - learn more
LA Venture Funds
- Cedars Sinai Ventures joined Amae Health’s $25M Series B, led by Altos Ventures with participation from Quiet Capital, Bling Capital, Healthier Capital, and 8VC. The company, which is building an AI enabled clinic model for severe mental illness, says the funding will accelerate nationwide clinic openings, advance its AI care platform, and support research into conditions like schizophrenia, bipolar disorder, and treatment resistant depression. Total funding now tops $50 million. - learn more
- Magnify Ventures participated in MiSalud Health’s new funding round led by IGNIA, alongside Ulu Ventures, Redwood Ventures, Amplifica Capital, and client investor Taylor Farms. MiSalud, which delivers bilingual virtual and on-site care for blue-collar workforces, says the capital will help it expand into 20 new states and add services typically offered only in person; reports peg total funding at about $18.3 million. - learn more
- Alexandria Venture Investments participated in Accipiter Biosciences’ $12.7M seed round, which was co-led by Takeda and Flying Fish Partners. The Seattle startup is developing AI-designed de novo protein therapeutics that can combine multiple mechanisms in a single molecule, and it also announced partnerships with Pfizer and Kite Pharma alongside the financing. The company says the funds will advance preclinical programs in immunology and oncology and further build out its computational design platform. - learn more
- Rebel Fund participated in Cactus’s $7M seed round alongside Wellington Management, Y Combinator, and Pelion Venture Partners. Cactus builds a 24/7 AI copilot for home service businesses that answers calls, qualifies leads, books jobs, and manages follow ups to capture after hours demand. The company says the funding will support product expansion and go to market growth in the United States. - learn more
- B Capital joined the angel round for Microtide Biotechnology (also known as Weitao Bio), which raised over RMB 100 million, led by Qiming Venture Partners. The Shanghai company, spun out from Sile Biomedicine’s in vivo CAR T platform, is developing targeted LNP delivered in vivo CAR T therapies for blood cancers and autoimmune diseases, and will use the funds to advance its first candidate and further develop its core platform. - learn more
- Patron co led Flint’s $15M Series A, with participation from the USC Viterbi School of Engineering alongside Basis Set Ventures, AME Cloud Ventures, Afore Capital, and Y Combinator. Flint builds an AI platform that helps teachers personalize K 12 learning, and the company says the funding will accelerate product development and scale the service to more schools. - learn more
- Rebel Fund participated in Freya’s $3.5M round alongside Y Combinator, 212 VC, N1 Tech, BD Partners, and others. Freya is building voice automation tools that let companies create and manage natural language voice workflows, aiming to replace brittle IVR systems with more flexible, AI powered voice agents. The company says the funding will accelerate product development and early go to market efforts. - learn more
- Regeneration.VC led Hullbot’s roughly $10.6M Series A, with participation from Climate Tech Partners, Katapult Ocean, Folklore, Trinity Ventures, Rypples, NewSouth Innovations, and Bandera Capital. The Australian startup builds autonomous hull-cleaning robots that remove biofouling to cut ship fuel use and emissions, and it plans to use the funding to ramp manufacturing, expand global service hubs, and develop larger robotic platforms. - learn more
- M13 led Teleskope’s $25M Series A, with continued participation from Primary Venture Partners and Lerer Hippeau. Teleskope builds an agentic data security platform for the AI era, and says the capital brings total funding to $32.2M to accelerate product development and scale go to market. - learn more
- SmartGateVC participated in Coherence Neuro’s $10M seed round led by Topology Ventures and Artesian, alongside Blackbird, Possible Ventures, XEIA, Jumpspace, Divergent, Spacewalk VC, and others. San Francisco based Coherence Neuro is developing a closed-loop, bi-directional neurotechnology platform to treat cancers like glioblastoma by decoding and modulating electrical signals; the funding will support its first human trials and further product development. - learn more
- Rebel Fund participated in Mecha Health’s $4.1M seed round led by Valia Ventures, alongside Y Combinator, Reach Capital, and Phosphor Capital. Mecha Health is an applied AI lab that builds foundation models for radiology which read medical images and generate fully structured reports, and the new capital supports continued development and deployment of these systems. - learn more
LA Exits
- Green Econome was acquired by VCA Green, the sustainability practice of VCA Consultants. The Los Angeles firm is known for lifecycle strategies, building performance reporting, and compliance services like ENERGY STAR, LEED, CALGreen, and Title 24; combining it with VCA Green’s energy modeling, project management, and field verification creates a single team serving both new construction and existing buildings. Marika Erdely, Green Econome’s founder, is joining VCA Green as a principal. - learn more
- InData Consulting was acquired by The 20 MSP as part of a three-company deal that also included Red Level Group and iStreet Solutions. The additions expand The 20 MSP’s footprint in California, Arizona, Michigan, and the Sacramento area, bringing its total to 44 acquisitions in about three years. The company says it sources targets from its peer group to speed integrations and reduce attrition. - learn more
- Caulipower was acquired by Urban Farmer, a Paine Schwartz Partners portfolio company, creating a vertically integrated “better for you” frozen foods platform that pairs Urban Farmer’s manufacturing with Caulipower’s nationwide brand and distribution. Caulipower will continue operating under its name, with founder Gail Becker joining Urban Farmer’s board; financial terms were not disclosed. - learn more
- StudyOS was acquired by Sitero, a technology-enabled CRO, which simultaneously launched SiteroAI to position itself as the industry’s first fully AI-powered CRO. StudyOS’s Ash clinical-trial agent will be integrated with Sitero’s Mentor eClinical suite, with Sitero projecting 20–30% efficiency gains across the trial lifecycle beginning in 2026; terms were not disclosed. - learn more
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