A bankruptcy judge will hear arguments from a conspiracy theorist on Monday Alex Jones ‘ Attempt to stop satirical news outlet The Onion from buying Infowars and turning it into a company a parody.
Jones claims the bankruptcy auction was marred by fraud and collusion The Onion was named the highest bidder on Nov. 14 through a company affiliated with him.
It’s not clear how soon U.S. Bankruptcy Judge Christopher Lopez in Houston will issue a ruling. He could allow The Onion to move forward with the saleorder a new auction or name the other bidder as the winner. At stake is whether Jones will be allowed to remain at the Infowars studio in Austin, Texas, under a new owner friendly to him, or whether he will be kicked out by The Onion.
The other bidder, First United American Companies, operates a website that sells nutritional supplements in Jones’ name.
Regardless, Jones has set up a new studio, websites and social media accounts that would allow him to continue broadcasting his show. And his personal account with 3.3 million followers on the social platform X was not part of the sale, although Lopez will decide whether to include it in the liquidation and sell it later.
Jones’ bankruptcy and the liquidation of his assets came after he was ordered to pay nearly $1.5 billion to victims’ families the shooting at Sandy Hook Elementary School in Newtown, Connecticut. Jones was found liable for defamation and emotional damages in lawsuits in Connecticut and Texas for repeatedly calling the 2012 shooting that killed 20 first-graders and six educators a hoax staged by actors to improve gun control.
Proceeds from the liquidation are expected to go to Jones creditors, including the Sandy Hook families who sued him.
Jones Allegedly, The Onion’s bid was the result of fraud and collusion involving many of these families, the humor website, and a court-appointed trustee overseeing the liquidation.
First United American Companies submitted a sealed offer of $3.5 million, while The Onion offered $1.75 million in cash. However, The Onion’s offer also included a commitment from the Sandy Hook families to forgo some or all of the auction proceeds to which they were entitled in order to give other creditors a total of $100,000 more than they would receive under other bids .
Trustee Christopher Murray said The Onion’s proposal was better for creditors and called it the winner. He has denied any wrongdoing.
Jones and First United American Companies claimed that the bid violated Lopez’s auction rules because it involved multiple companies and lacked a valid dollar amount. Jones also claimed that Murray wrongly canceled an expected live bidding round and only selected from the sealed bids submitted.
Jones called the auction “rigged” and a “scam” on his show, which airs on the Infowars website, radio stations and on Jones’s X account.
In a court filing, Murray called the allegations “an improper attempt by a disappointed bidder to influence an otherwise fair and open auction process.”
Lopez’s September order on auction procedures made a live bidding round optional. And it gave Murray broad powers to carry out the sale, including the power to reject any offer, no matter how high, that was “contrary to the best interests” of Jones, his company and his creditors.
But at a Nov. 14 hearing, Lopez said he was concerned about the process and transparency.
“We’re all going to an evidentiary hearing and I’m going to find out exactly what happened,” he said. “No one should feel comfortable with the results of this auction.”
Infowars’ parent company Free Speech Systems’ assets up for sale included its Austin studio, Infowars’ video archive, video production equipment, product brands, and Infowars’ websites and social media accounts.
Jones is appealing the $1.5 billion verdict, citing free speech rights, but has acknowledged this The school shooting happened.
Jones has made millions of dollars in annual revenue by selling nutritional supplements, clothing, survival gear and other goods – including more than $22 million this year through his Infowars Store website through Sept. 30, according to court documents.
Many of Jones’ personal assets, including real estate as well as weapons and other personal items, will also be sold as part of the bankruptcy.
Documents filed in court earlier this year said Jones had about $9 million in personal assets, while Free Speech Systems had about $6 million in cash and more than $1 million worth of inventory .