Bankruptcy Judge Blocks Sale of Alex Jones’ Infowars to The Onion.
A U.S. judge has intervened to prevent the parody news site The Onion from acquiring Alex Jones‘ Infowars website, stating that the bankruptcy auction did not yield the best possible offers. During a two-day hearing in Houston, U.S. Bankruptcy Judge Christopher Lopez dismissed Jones’ allegations of “collusion” in the auction process. However, he noted that the court-appointed bankruptcy trustee made a “good-faith error” by hastily soliciting final bids for Infowars instead of facilitating further negotiations between The Onion and a company linked to Jones’ supplement business, which was the second-highest bidder.
“This should have been reopened for everyone,” Lopez remarked. “It’s evident that the trustee missed out on a significant amount of potential money.” Lopez pointed out that neither of the bids for Infowars was sufficient considering Jones’ extensive debts, instructing the trustee to address some creditor disputes before attempting to sell Infowars again.
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The Onion was initially declared the winning bidder for Infowars in a November auction, but Jones and First American United Companies, the entity associated with him, contended that the sale was compromised because The Onion received undue advantage due to the backing of families who had won substantial court judgments against Jones.
Jones filed for bankruptcy in 2022, compelled to liquidate his assets to cover $1.3 billion in legal judgments owed to the families of 20 students and six staff members killed in the 2012 Sandy Hook Elementary School shooting in Newtown, Connecticut. Courts in both Connecticut and Texas have determined that Jones defamed these families by repeatedly asserting false claims that the shooting was staged as part of a government conspiracy to confiscate firearms from Americans.
The Onion has announced its intention to re-launch Infowars in 2025 as a parody platform that will feature “noticeably less hateful disinformation” compared to its previous version. During a hearing on Monday, Jones’ attorney, Ben Broocks, informed Lopez that The Onion’s cash offer was only half of the $3.5 million proposal from First American United Companies, but it enhanced its bid with what he described as “smoke and mirrors” calculations.
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The families affected by the Sandy Hook tragedy, who are Jones’ primary creditors, supported The Onion’s offer by agreeing to waive some repayment from the Infowars sale, allowing other creditors to receive a larger share. Christopher Murray, a trustee appointed by the court to oversee the sale of Jones’ assets, testified on Tuesday that the auction process was conducted fairly, noting that First American United Companies only raised concerns after discovering that its bid was not selected.
The U.S. bankruptcy judge’s decision to block The Onion’s purchase of Infowars underscores the complexities of the auction process and the need for fairness in bankruptcy proceedings. Despite The Onion’s bid being backed by Sandy Hook families, the judge found that neither offer was sufficient to cover Alex Jones’ significant debts. The ruling emphasizes the importance of thorough negotiations and transparency in asset sales, particularly when dealing with high-profile cases involving major legal judgments. The Infowars sale remains on hold, with further negotiations required before a final resolution can be reached.