In a dramatic turn of events, Infowars founder and conspiracy theorist Alex Jones has petitioned a U.S. judge to convert his bankruptcy case to Chapter 7 liquidation, signaling a retreat from his previous efforts to manage the enormous legal penalties arising from his false claims about the 2012 Sandy Hook Elementary School massacre.
Jones’ legal team submitted a filing late Thursday, stating that there is no feasible path to reorganize his debts, which are dominated by $1.5 billion in defamation judgments. The Chapter 7 liquidation would facilitate the sale of his assets under the supervision of a court-appointed trustee, though it won’t absolve him of the legal judgments.
The request follows court orders from Texas and Connecticut requiring Jones to compensate the families of 20 children and six educators who perished in the Sandy Hook tragedy. Despite the potential for bankruptcy to discharge some debts, the judge in Jones’ case previously ruled that the defamation verdicts stand, citing their roots in “willful and malicious injury.”
In a Tuesday broadcast of his Alex Jones Show, Jones accused the Sandy Hook families of using a “made up kangaroo court debt” to silence him. A spokesperson for the families refrained from commenting on Thursday.
Jones had long propagated the theory that the Sandy Hook shooting was a staged event orchestrated by the government to undermine gun rights. He has since recanted, admitting the tragedy’s reality. However, the damage was done, with grieving parents enduring harassment and threats fueled by his conspiracy theories, all while Jones profited through increased traffic and sales on his Infowars site.
An attempt by Jones to settle with the Sandy Hook families for $55 million was unanimously rejected. The families have proposed their own plan for liquidating Jones’ assets, which will be reviewed by U.S. Bankruptcy Judge Christopher Lopez on June 14.
Initially, Jones filed for Chapter 11 bankruptcy, allowing him to retain asset control and develop a debt restructuring plan. However, Chapter 11 entails significant legal and court fees, which Jones’ attorneys now deem burdensome and of little benefit compared to Chapter 7 liquidation.
As the legal saga continues, the future of Jones’ assets and the resolution of the judgments against him remain uncertain, pending the court’s decision.
