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A U.S. bankruptcy judge delivered a significant ruling on Tuesday, preventing the parody news outlet the Onion from acquiring Alex Jones’s controversial Infowars website. The judge determined that the recent auction did not yield the best possible financial outcomes for the sale.
During a two-day hearing in Houston, U.S. Bankruptcy Judge Christopher Lopez dismissed Jones’s allegations of “collusion” during the auction process. However, he did highlight that the bankruptcy trustee appointed for the sale had made a “good-faith error” by hastily soliciting final bids instead of fostering a competitive bidding environment that could have maximized returns.
“This should have been reopened for further bidding and for all interested parties,” Judge Lopez stated. “It’s evident that the trustee missed an opportunity to secure a higher price.”
Lopez pointed out that neither the Onion‘s bid nor that from Jones’s affiliated company was adequate in light of the substantial debts Jones faces. He instructed the trustee to address existing disputes amongst creditors before attempting to resell Infowars.
Originally declared the winning bidder in November, the Onion had plans to transform Infowars into a parody site by 2025. However, Jones and First American United Companies, a business linked to him, contested the legitimacy of the auction, suggesting that the Onion was unduly favored because its bid was buoyed by the support from families who had secured significant verdicts against Jones in court.
Jones filed for bankruptcy in 2022 after being ordered to pay over $1.3 billion in damages to the families of victims from the tragic Sandy Hook Elementary School shooting, which occurred in 2012. Jones faced criticism and legal action for perpetuating the unfounded narrative that the shooting was staged as part of a government conspiracy to implement gun control.
The Legal Battle Over Defamation
In both Connecticut and Texas, courts have found that Jones defamed the families of the Sandy Hook victims through his repeated disinformation campaigns, further complicating his financial and legal standing.
During the hearing, Jones’s attorney, Ben Broocks, contended that the Onion had offered significantly less cash than the $3.5 million bid from First American United Companies. He accused the Onion of inflating its offer with misleading financial calculations. The families of the Sandy Hook victims, who are Jones’s primary creditors, backed the Onion by agreeing to forgo some repayment from the Infowars sale, leading to an overall evaluation of their bid at $7 million by the bankruptcy trustee.
Chris Mattei, representing the Sandy Hook families, expressed disappointment over the ruling yet reaffirmed their commitment to ensuring accountability for Jones’s actions. “Despite ongoing challenges and delays, the families remain steadfast in their resolve to seek justice against Alex Jones and his businesses,” Mattei noted.
In response to the ruling, Jones took to Infowars to express his satisfaction with the outcome.
WATCH | The Onion’s Proposal for Infowars:
The Onion buys Alex Jones’s Infowars site at bankruptcy auction
Having faced backlash for his past statements, Jones has garnered further scrutiny from multiple fronts. The Onion‘s CEO, Ben Collins, remarked on the court’s decision, voicing disappointment but maintaining a keen interest in reviving Infowars with a commitment to producing a more responsible and light-hearted content platform.
In an effort to affirm the integrity of the auction, Christopher Murray, the court-appointed trustee responsible for selling Jones’s assets, defended the process, stating that complaints from First American United Companies only arose after they learned their bid had not been accepted.
Source
www.cbc.ca