Litigation Trends to Watch: New Suits Center On Children’s Privacy, AI-Generated Search Responses and Surprise Medical Bills

In a legal landscape increasingly shaped by technology and consumer rights, 2025 has seen a surge in high-stakes lawsuits targeting digital vulnerabilities and healthcare inequities. From Big Tech’s data grabs on kids to AI chatbots spitting out copyrighted content, and hospitals hitting patients with unexpected bills despite federal safeguards, these cases are redefining accountability. As courts grapple with these issues, U.S. families, businesses, and innovators face ripple effects that could cost billions—making children’s privacy lawsuits 2025, AI copyright infringement cases, and surprise medical billing disputes must-watch battles for the year ahead.

This wave of litigation reflects broader shifts: stricter privacy regs post-COPPA updates, AI’s explosive growth clashing with IP laws, and the No Surprises Act’s uneven rollout. With over 50 new filings tied to these themes in the first nine months, per federal dockets, the stakes couldn’t be higher.

Protecting the Next Generation: Children’s Privacy Suits Explode

Children’s online safety has ignited a firestorm of class actions and regulatory crackdowns. Tech giants face mounting pressure to shield minors from data exploitation, with states and the FTC leading the charge.

Google’s $30M YouTube Settlement: A COPPA Wake-Up Call

Google inked a $30 million deal in August 2025 to resolve claims it scooped up personal data from kids under 13 on YouTube without parental OK, violating the Children’s Online Privacy Protection Act (COPPA). The suit, filed by guardians of 34 children, alleged the platform used cartoons and rhymes to lure young viewers into sharing info for targeted ads—echoing a 2019 FTC fine of $170 million.

Covering kids who watched from 2013 to 2020, the class could span 35-45 million members. Google denies wrongdoing but agreed to tweaks in data practices. FTC Chair Lina Khan hailed it as a step toward curbing “vast surveillance” of minors.

State Laws Fuel New Wave of Enforcement

By mid-2025, 19 states mandated age verification for harmful content, from porn to violence, sparking suits against non-compliant platforms. Tennessee’s Protecting Children from Social Media Act, effective January 2025, demands parental consent for under-18s and lets guardians tweak privacy settings.

Texas AG Ken Paxton defended HB 1181 at the Supreme Court in January, arguing it doesn’t trample First Amendment rights despite challenges from free-speech advocates. Utah’s App Store Accountability Act targets developers and stores like Apple for age checks on downloads, leading to early probes.

Amendments to laws like California’s CCPA now treat under-16 data as “sensitive,” requiring opt-in consent and boosting potential class sizes. Colorado and Montana’s 2025 updates expand “harm” definitions to include harassment and exploitation, teeing up more filings.

AI’s Creative Chaos: Suits Over Generated Search Responses

AI tools promising instant answers are under fire for allegedly regurgitating copyrighted material, turning search engines into infringement machines. 2025’s docket is packed with first-of-their-kind rulings.

Britannica vs. Perplexity: The ‘Answer Engine’ Showdown

Encyclopedia Britannica and Merriam-Webster sued Perplexity AI in September 2025, claiming its AI summaries pilfered their content to siphon web traffic and revenue. The New York federal suit accuses the “answer engine” of copying entries verbatim, bypassing links to originals and violating copyrights.

Perplexity, valued at $1 billion, faces a parallel News Corp suit over Dow Jones articles. Experts predict this could set precedents for “fair use” in AI outputs, with damages potentially hitting $100 million if summaries are deemed derivative.

Thomson Reuters’ Win: Training Data in the Crosshairs

A Delaware court ruled in February 2025 that ROSS Intelligence infringed copyrights by scraping Westlaw headnotes to train its AI legal search tool. The decision, Thomson Reuters v. ROSS, marks the first major 2025 AI copyright verdict, rejecting claims that ingestion for training qualifies as fair use.

The U.S. Copyright Office reinforced this in January, stating fully AI-generated works lack human authorship for protection—yet training on protected data remains fair game only if transformative. New York Times v. Microsoft, alleging LLM training on millions of articles, looms large, with outputs mimicking Times prose verbatim.

Litigators forecast a boom: Cooley’s Michael Attanasio warns of tort suits over faulty AI, like navigation errors in planes or biased risk scores in criminal cases. The NO FAKES Act, pending in Congress, eyes federal publicity rights against AI deepfakes.

Healthcare Headaches Persist: Surprise Billing Battles Rage On

The No Surprises Act (NSA) promised relief from shock bills, but 2025 lawsuits reveal loopholes exploited by providers and private equity firms.

Provider Pushback: Third Round of NSA Challenges

Six provider groups launched fresh suits against HHS in 2025, contesting the NSA’s independent dispute resolution (IDR) process for out-of-network payments. Texas Medical Association v. HHS (TMA III), filed September 2025, claims the system favors insurers, swamping arbitration with lowball offers.

Litigation has already axed key rules, like baseball-style arbitration, forcing open-ended negotiations that delay resolutions. Private equity-backed staffing agencies, concentrated in a few states, drive 40% of disputes, per Families USA.

Patient Nightmares: Bills Still Shock Despite Safeguards

Minnesota saw medical debt lawsuits hit a five-year high in 2025, with hospitals suing patients over unpaid balances post-NSA. A Washington Post probe uncovered cases like Jessica Chen’s $1,677 surprise after a $359 mammogram estimate—disputable if over $400, but processes drag.

Uninsured patients can now challenge bills exceeding good faith estimates by $400 within 120 days, but awareness lags—only 20% know their rights, CMS reports. Air ambulance suits persist, with Guardian Flight v. Texas among consolidated cases testing NSA limits.

Expert Insights: What Litigators and Regulators See Coming

Privacy pros like Mayer Brown’s team note states’ “patchwork” laws could spawn 100+ suits by year-end, urging companies to audit kid-facing apps. On AI, Reuters’ Daniel Wu predicts “tort explosions” over hallucinations, citing 2025 fines for lawyers using fake AI citations.

Healthcare advocates decry provider “endless disputes” undermining the NSA, with Families USA calling for congressional fixes. X buzz under #SurpriseBilling spikes 300% amid stories, blending outrage with calls for enforcement.

Real-World Ripples: Hits to Wallets, Wallets, and Workflows

For U.S. consumers, these suits mean tighter data controls but higher ad costs—tech firms may pass COPPA compliance fees to users, adding $5-10 yearly per family. AI cases threaten innovation; a Thomson-style ruling could hike training data licenses by 50%, per industry estimates, slowing tools like Lexis+ AI.

Economically, surprise billing fights safeguard $10 billion in annual patient pockets, but unresolved IDR clogs courts, delaying justice. Politically, they fuel bipartisan pushes for NSA tweaks amid midterms. Lifestyle-wise, parents gain app monitoring tools, while pros eye AI aids like Briefpoint for faster filings—yet risk sanctions for unchecked outputs.

Verdict Ahead: A Pivotal Close to 2025

These litigation trends—children’s privacy lawsuits 2025, AI-generated search responses battles, and surprise medical billing disputes—signal a reckoning for unchecked tech and opaque care. Settlements like Google’s and rulings like Thomson’s offer early wins, but ongoing fights promise stricter rules and smarter safeguards.

As dockets swell toward 2026, expect federal harmonization on privacy and AI ethics, plus NSA bolstering to end billing shocks for good. For now, stay vigilant: Review your kids’ apps, vet AI outputs, and dispute wild bills. The law’s evolving—make sure you’re ahead.