In a significant development, a U.S. bankruptcy judge has ordered the liquidation of conspiracy theorist Alex Jones’ personal assets while allowing his company, Free Speech Systems, to avoid the same fate.
On Friday, U.S. Bankruptcy Judge Christopher Lopez appointed a Chapter 7 trustee to oversee the sale of Jones’ assets, including his ownership stake in Free Speech Systems, the parent company of his notorious Infowars website. The proceeds are earmarked for the creditors, primarily the families of 20 students and six staff members who were killed in the 2012 Sandy Hook Elementary School shooting.
However, Judge Lopez stopped short of forcing Free Speech Systems into liquidation, permitting Jones to continue managing the company until his ownership stake is sold. This decision came despite arguments from some Sandy Hook families who feared that Jones might undermine the company or hide its assets.
“There’s been lots of talk about whether Mr. Jones has regained control of the business, but the reality is he never really lost it,” Lopez stated, clarifying that the bankruptcy court’s supervision had not interfered with Jones’ broadcasts.
This mixed ruling sets the stage for further legal battles involving Jones, his company, and the Sandy Hook families. Among the contentious issues is $6 million in cash held by Free Speech Systems, which the families are also targeting. Additionally, they will continue efforts to recover funds that Jones allegedly diverted to his wife, father, and close associates.
The Sandy Hook families are divided on the best course of action. Those who sued Jones in Connecticut believe that an immediate shutdown of Free Speech Systems would prevent further financial maneuvering by Jones. Conversely, families who filed suit in Texas argue that keeping the company operational could result in higher payouts in the long run.
“You can’t control Alex Jones,” said Avi Moshenberg, an attorney for the Texas families. “What you can do, what the law allows, is to make Alex Jones and Free Speech Systems pay on the judgments rendered by juries.”
Jones’ attorney, Vickie Driver, countered that the Connecticut families were attempting to infringe on Jones’ First Amendment rights, asserting that liquidation wouldn’t stop Jones from broadcasting his views.
Following the ruling, Chris Mattei, an attorney for the Connecticut families, expressed a cautious optimism, predicting that Infowars is “soon-to-be defunct.” Mattei remarked, “Alex Jones is neither a martyr nor a victim. He is the perpetrator of the worst defamation in American history.”
The judge, visibly moved at times, noted the painful irony of making this decision just before Father’s Day, acknowledging the profound loss felt by the Sandy Hook families.
Further decisions, including those regarding control over Jones’ social media accounts and the appointment of the trustee to handle the liquidation, have been deferred.
Jones sought bankruptcy protection 17 months ago but failed to secure a settlement that would reduce the $1.5 billion he owes the Sandy Hook families. This debt, resulting from what courts determined to be “willful and malicious” defamation, is expected to survive the liquidation process.
Jones had long propagated the falsehood that the Sandy Hook massacre was staged to promote gun control, a claim he has since retracted, acknowledging the reality of the tragic event.
