The families of Sandy Hook Elementary School shooting victims opposed a move by First United American Cos. LLC to proceed with an asset sale of the parent company of Alex Jones’s Infowars.
The families said in an objection filed Tuesday in the US Bankruptcy Court for the Southern District of Texas that another contested sale process, following an unsuccessful effort last year, “would inevitably result in significant, additional administrative expenses to the estate.”
Free Speech Systems LLC and Jones have incurred more than $10 million in legal costs since the bankruptcy, they said. The families hold judgments against Jones from Connecticut and Texas state courts.
Additionally, the families contended that the court had “expressly rejected the remedy FUAC seeks,” citing a Feb. 5 hearing where the court declared the asset auction void. They asked the court to not revisit that decision.
“FUAC merely wants a second bite at the apple after its previous disappointment and asks that the Court reverse its unequivocal decision not to pursue a sale of FSS’s assets without offering any new information or changed circumstances to warrant such a reversal,” the families said.
Jones has been in bankruptcy for more than two years following judgments in which Sandy Hook families were awarded over $1.3 billion related to his false claims that the 2012 Connecticut massacre was a hoax.
Two parties, FUAC, which operates ShopAlexJones.com, and the artificial intelligence entertainment company WOW.AI LLC, have expressed interest in acquiring FSS assets through a bankruptcy sale.
After the February hearing, FUAC moved to restart bidding procedures. The company said it submitted a new $8 million cash offer, effectively doubling its previous bid, to the trustee overseeing Jones’ bankruptcy in December but has yet to receive a formal response.
WOW.AI’s bid included $3.5 million in cash and “51% of the total maximum supply of the $WARS meme coin,” according to a press release. The coin, which was launched last month, would be placed in a wallet for Jones’ bankruptcy trustee.
A bankruptcy judge in December rejected an attempt by the satirical news site the Onion to acquire Infowars’ assets. The Sandy Hook families had partnered with the Onion’s parent company, Global Tetrahedron LLC, to increase the bid’s value.
The judge, in shutting down the offer, cited a lack of transparency in the initial auction.
The families holding judgments in Connecticut are represented by Cain & Skarnulis PLLC, Koskoff Koskoff & Bieder PC and Paul Weiss Rifkind Wharton & Garrison LLP. 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 Jones, Bankr. S.D. Tex., No. 22-33553, objection 3/11/25.
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