- No bids on Infowars parent company’s equity, trustee says
- Some Alex Jones properties could hit the market this year
Alex Jones’ long running bankruptcy case must come to a conclusion, a Houston bankruptcy judge told lawyers for the right-wing conspiracy theorist, the trustee of his estate, and families of Sandy Hook Elementary School shooting victims.
The bankruptcy has racked up hefty legal expenses and become complex due to an array of litigation in state and federal courts, Judge Christopher M. Lopez of the US Bankruptcy Court for the Southern District of Texas said at a status hearing Thursday.
Jones and his Infowars parent company, Free Speech Systems LLC, filed for bankruptcy following state court judgments in 2022 in which the Sandy Hook families were awarded more than $1.3 billion related to his false claims that the 2012 Connecticut massacre was a hoax. Free Speech’s case was dismissed last year, and Jones’ estate was handed over to a Chapter 7 trustee.
Lopez’s push came after the trustee, Christopher Murray of Jones Murray LLP, told the judge that there’s been no interest in buying the equity to the Infowars parent company.
Jones’ attorney, Shelby Jordan of Jordan & Ortiz PC, said the Jones camp has been unable to figure out how to buy Infowars’ equity without also taking on its massive debts, which can’t be discharged in bankruptcy.
However, an auctioneer has been working to list and sell some of Jones’ real property, said Jones Murray partner Erin Jones. A sale could potentially happen by year’s end, she said.
Lopez urged the attorneys to ensure the properties hit the market by September or October, noting that the bankruptcy has been lingering since 2022.
“It needs to end,” Lopez said.
Lopez also vacillated over whether he would consider another auction of the Infowars assets after shutting down a proposed sale last year to satirical news site The Onion, which was backed by Sandy Hook families.
By the end of Thursday’s hearing, Lopez said he was still not inclined to open up another sale process, but said attorneys need to figure out what to do with the Infowars assets within 60 days.
“It’s more complicated now than it was six months ago,” Lopez said.
Sale Fight
Attorneys for Jones again pushed Lopez to allow the trustee to reopen the auction for the Infowars assets—a prospect the judge has so far rejected and the families have opposed. Jordan noted that previous sale offers yielded a bid of $8 million for the Infowars assets, and said the Sandy Hook families want to instead hold a Texas state court constable auction for the Infowars assets.
The attorneys raised concerns about a perceived “illegal deal” and “abuse of process” between the families who sued in Connecticut and Texas state courts to manipulate the system and “destroy Alex Jones” and his brand, rather than seeking financial recovery.
Those allegations were dismissed as “mischaracterizations,” by Kyle J. Kimpler, a Paul, Weiss, Rifkind, Wharton & Garrison LLP attorney representing the Connecticut plaintiffs.
Jones has “continued to harass and threaten” the families on air and his real intention is for Lopez to act as an appellate court after continuing to lose state court appeals, Kimpler said.
Another Jones, attorney Ben Broocks of Broocks Law Firm PLLC, at the hearing promised that Jones will soon ask the US Supreme Court to consider overturning the Connecticut state court judgment. But Kimpler said that effort would be weak because Jones failed to raise constitutional issues in previous appeals.
Kimpler noted that the Connecticut families are prepared to abandon a fight over whether $323 million can be discharged in bankruptcy, which would still leave Jones and Infowars with $965 million in debts they can’t toss.
The families holding judgments in Connecticut are also represented by Cain & Skarnulis PLLC and Koskoff Koskoff & Bieder PC. The families holding judgments in Texas are represented by Willkie Farr & Gallagher LLP, Lawson & Moshenberg PLLC, and Chamberlain Hrdlicka White Williams & Aughtry PC.
The case is Alexander E. Jones, Bankr. S.D. Tex., No. 22-33553, hearing 6/5/25.
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