Relatives of the Sandy Hook Elementary School shooting victims have requested a bankruptcy judge to liquidate the media company owned by conspiracy theorist Alex Jones, which includes Infowars. Instead of allowing Jones to reorganize his business, they are seeking to collect the $1.5 billion in lawsuit verdicts against him.
Lawyers representing the families have taken urgent action by filing an emergency motion on Sunday in U.S. Bankruptcy Court in Houston. They argue that Free Speech Systems lacks any chance of obtaining court approval for a reorganization plan and has failed to show any indication of addressing their legal claims. These claims are in relation to Jones’ unfounded allegations that the 2012 school shooting was a hoax.
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A hearing regarding Free Speech Systems’ bankruptcy case has been scheduled for Monday. The hearing is in relation to a dispute concerning the company’s finances.
Jones took to his web and radio show over the weekend, expressing his belief in a conspiracy against him and predicting the imminent shutdown of Infowars due to the bankruptcy court filings by the families. During his passionate monologue, Jones used profanity and even shed tears at certain moments.
Jones spoke about his situation on his show, expressing his belief that there is no escape. He described himself as being in a bunker and assured his audience that he will return. Despite facing attacks from his perceived enemies, Jones remained confident in his ability to overcome the challenges.
Jones remained defiant on Saturday, expressing his determination to overcome the challenges ahead. He passionately declared, “We will triumph over these individuals. I don’t mean to sound overly dramatic, but this battle has been arduous. They harbor a deep animosity towards our children.”
On Monday, a message seeking comment was left for a bankruptcy lawyer representing Free Speech Systems, but there has been no immediate response.
In the event of liquidation, Jones, who is located in Austin, Texas, may be required to sell off the majority of his possessions, including his company and its assets. However, he would be able to retain his home and other personal belongings that are exempt from bankruptcy liquidation. The proceeds from the sale would then be distributed to his creditors, which includes the families affected by the Sandy Hook tragedy. It is important to note that there is currently no agreement or court ruling in place regarding the specifics of how the liquidation process would unfold in Jones’ cases.
Jones and Free Speech Systems both filed for bankruptcy reorganization following the successful lawsuits by the Sandy Hook families in Texas and Connecticut. These lawsuits accused Jones of defamation and causing emotional distress with his false claims. On his show, Jones propagated the hoax theory that the tragic school shooting, which claimed the lives of 20 first graders and six educators, was staged by crisis actors as part of a scheme to promote stricter gun control laws.
Jones’ lawyers have been in ongoing negotiations with the attorneys representing the Sandy Hook families for several months, but they have been unable to come to an agreement on how to resolve the bankruptcy cases. In a recent court hearing, Jones’ lawyer expressed the possibility of the cases being liquidated or withdrawn. The emergency motion, which was filed on Sunday, pertains to Free Speech System’s case.
Withdrawing the cases would leave Jones in the same position he was in after the lawsuits awarded him $1.5 billion in damages. Additionally, it would shift the responsibility of collecting the damages back to the state courts where the verdicts were initially reached.
Many, but not all, of the Sandy Hook victims’ families filed lawsuits against Jones and emerged victorious in both the Connecticut and Texas trials.
The comments made by Jones and the behavior of his followers have left the relatives deeply traumatized. During the trials, they bravely shared their experiences of being harassed and threatened by Jones’ believers. These grieving families were even confronted in person by some of these individuals, who claimed that the shooting never occurred and that their children were figments of their imagination.
According to the latest financial statements submitted to the bankruptcy court, Jones possesses approximately $9 million in assets. This includes his $2.6 million home in the Austin area and other real estate properties. In addition, his living expenses for the month of April alone were listed at around $69,000. This sum includes various expenditures related to his home, such as maintenance, housekeeping, and insurance, which amounted to approximately $16,500.
Free Speech Systems, the parent company of Infowars, is in a strong financial position with almost $4 million in cash at the end of April. The company generated a revenue of nearly $3.2 million in April, primarily from the sale of dietary supplements, clothing, and other products endorsed by Jones on his show. Despite incurring expenses totaling $1.9 million, the business remains well-funded.
Jones and the Sandy Hook families have put forward separate proposals in order to settle the $1.5 billion debt he owes them. In the past year, Free Speech Systems presented a plan that would allocate $7 million to $10 million annually for the purpose of repaying creditors.
The families responded with a counterproposal, suggesting two options. The first option was to sell off Jones’ estate and distribute the proceeds among the creditors. The second option was to pay the creditors a minimum of $8.5 million annually for a period of 10 years. Additionally, they requested 50% of any income exceeding $9 million per year.
