A federal judge in Texas has approved the liquidation of personal assets, and rejected a proposal for the liquidation of conspiracy theorist Alex Jones’ Infowars company, Free Speech Systems, which means the Sandy Hook families can now move immediately to collect on the $1.5 billion in state courts in Texas and Connecticut where they won defamation lawsuits against Jones and the company.
Chris Mattei, a lawyer for the Sandy Hook families, called Infowars “soon-to-be defunct” as his clients move to collect on the debt in state courts. He said the families will also pursue Jones’ future earnings.
“Today is a good day,” Mattei said in a text message after the hearing. “Alex Jones has lost ownership of Infowars, the corrupt business he has used for years to attack the Connecticut families and so many others. ... Alex Jones is neither a martyr nor a victim. He is the perpetrator of the worst defamation in American history.”
The judge approved a separate liquidation of Jones’ personal assets, but said the denial of the company bankruptcy plan was “in the best interest of the creditors.” Whatever proceeds are gained from Jones’ personal bankruptcy will amount to just a fraction of what he owes families of Sandy Hook victims.
Jones and his allies are trying to portray the denial of the business bankruptcy as some kind of a win, but lawyers for the families say they will benefit more from the dismissal, rather than waiting for a prolonged bankruptcy procedure to play out.
An interim trustee, and later a permanent trustee, in Jones’ personal case will ultimately decide Infowars’ fate. There is speculation that Infowars could be sold by the court-appointed trustee to pay some of the damages owed to the families, but it would likely not fetch a high price.
Infowars may operate a bit longer, but both Jones and lawyers for the Sandy Hook families said they expect Infowars to cease operating at some point because of the huge debt.
“I’m going to try to move forward and maximize the amount of money we can make at Infowars to then have a wind-down,” Jones said outside the court house after the hearing Friday.
Sandy Hook families have testified about being harassed and threatened by Jones’ believers, some of whom confronted the grieving families in person saying the 2012 shooting never happened and their children never existed. One parent said someone threatened to dig up his dead son’s grave.
The rulings on Friday will not prevent Alex Jones from continuing to spread conspiracy theories on other online platforms, but the Sandy Hook families are hoping to seize Jones’ social media accounts, arguing they are a key part of his Infowars business that allow Jones to promote his brand bullshit.
Jones had been listed as a guest on the Milwaukee stop on Tucker Carlson’s live tour but was recently dropped from the lineup without explanation.