A bankruptcy judge is scheduled to consider arguments on Monday regarding conspiracy theorist Alex Jones’ attempt to prevent the satirical news site The Onion from acquiring Infowars and transforming it into a parody outlet.
Jones claims that the auction process which led to The Onion being the winning bidder on November 14 was tainted by fraud and collusion. This auction was contested against a company that is linked to Jones himself.
It remains uncertain how quickly U.S. Bankruptcy Judge Christopher Lopez in Houston will reach a decision. He may permit The Onion to proceed with the acquisition, order a new bidding process, or designate the other bidder as the successful contender. The outcome of the case will determine whether Jones can continue working at Infowars’ studio in Austin, Texas, under a new owner sympathetic to him, or if he will be removed by The Onion.
The competitor in the auction, First United American Companies, operates a website under Jones’ name, marketing nutritional supplements.
In any case, Jones is reportedly establishing a new studio along with websites and social media accounts to maintain his broadcasting presence. His personal social media account, which has 3.3 million followers, was not included in this sale, although Judge Lopez will decide if it should be part of the liquidation process and available for later sale.
Jones’ bankruptcy proceedings stem from a court order requiring him to pay nearly $1.5 billion to the families of victims from the Sandy Hook Elementary School shooting in Newtown, Connecticut. He was deemed liable for defamation and emotional distress in lawsuits filed in Connecticut and Texas after falsely labeling the 2012 event that resulted in the deaths of 20 children and six educators as a hoax intended to manipulate gun control efforts.
The liquidation proceeds will be allocated to Jones’ creditors, which include the families from Sandy Hook who took legal action against him.
Jones has accused The Onion’s bid of being fraudulent, alleging that various parties, including the families involved, the humor site, and a court-appointed trustee overseeing the liquidation, colluded to influence the auction.
First United American Companies presented a sealed bid of $3.5 million, while The Onion submitted a cash offer of $1.75 million. However, The Onion’s proposal also involved a commitment from the Sandy Hook families to waive some or all of their auction proceeds to ensure that other creditors would gain an additional $100,000 over any other offers.
The appointed trustee, Christopher Murray, stated that this aspect made The Onion’s offer more advantageous for creditors and thus declared it the winning bid, firmly denying any misconduct on his part.
Jones and First United American Companies contended that the bid infringed on the auction rules set forth by Judge Lopez due to its inclusion of multiple entities and not presenting a valid dollar amount. Additionally, they claimed Murray improperly canceled a planned live bidding round and evaluated solely the sealed bids received.
During his show, which is broadcast on the Infowars website and his social media account, Jones criticized the auction process as “rigged” and a “fraud.”
A court document issued by Murray responded to these claims, characterizing them as an improper effort by a “disappointed bidder” to sway what he deemed an otherwise transparent auction process.
In a prior ruling from September regarding the auction, Judge Lopez indicated that live bidding was optional and granted Murray expansive authority to manage the sale, including the right to dismiss any bid deemed “contrary to the best interests” of Jones, his company, and their creditors.
However, Judge Lopez expressed unease regarding the auction’s integrity and transparency during a hearing on November 14, stating, “We’re all going to an evidentiary hearing and I’m going to figure out exactly what happened. No one should feel comfortable with the results of this auction.”
Assets belonging to Infowars’ parent company, Free Speech Systems, that are for sale include the Austin studio, Infowars’ video archives, production equipment, trademarks, and various websites and social media accounts related to Infowars.
While Jones appeals the $1.5 billion judgment on the grounds of free speech, he has acknowledged the reality of the Sandy Hook shooting.
He has generated millions of dollars in annual revenue by marketing health supplements, apparel, survival gear, and other products, amassing over $22 million in revenue from his Infowars Store website just this year up until September 30, according to court documents.
In conjunction with the bankruptcy proceedings, many of Jones’ personal possessions such as real estate, firearms, and other belongings are being liquidated.
Recent court documents revealed that Jones holds approximately $9 million in personal assets, while Free Speech Systems has around $6 million in cash and over $1 million in inventory.