A federal judge has mandated the liquidation of conspiracy theorist Alex Jones’ personal assets to address the $1.5 billion debt he owes for his false claims about the Sandy Hook Elementary School shooting. Judge Christopher Lopez approved the conversion of Jones’ personal bankruptcy reorganization into a liquidation. However, he dismissed the bankruptcy case of Jones’ company, Free Speech Systems, which owns the Infowars media platform.
The dismissal of Free Speech Systems’ case means that the Sandy Hook families can now move forward to collect the $1.5 billion in state courts in Texas and Connecticut, where they won defamation lawsuits against Jones and his company. This could potentially lead to the sale of the company’s assets to satisfy the debt.
Jones, who appeared unfazed as the judge dismissed the company’s case, later called into Infowars and predicted further legal battles in state courts. He claimed that political groups were using the families to silence him and vowed to find alternative ways to broadcast his shows if Infowars ceases operations.
Outside the courthouse, Jones criticized the families for not accepting his reorganization proposals and accused them of being manipulated by political entities. He expressed his intention to maximize revenues at Infowars to pay creditors and eventually wind down the business in a manner that supports its 44 employees.
Chris Mattei, a lawyer for the Sandy Hook families, described Infowars as “soon-to-be defunct” as his clients move to collect the debt. He emphasized that Jones is not a victim but the perpetrator of severe defamation.
Judge Lopez stated that his primary concern was what would be best for the company and its creditors. He noted that Free Speech Systems’ case was one of the longest-running of its kind and was nearing a resolution deadline. He believed that creditors would be better served by pursuing their rights in state courts.
Many of Jones’ personal assets will be sold off, but his primary home in the Austin area and some other belongings are exempt from bankruptcy liquidation. Jones has already moved to sell his Texas ranch, valued at about $2.8 million, along with a gun collection and other assets to pay debts.
In the lead-up to the hearing, Jones had been informing his audience that Free Speech Systems was on the brink of shutdown due to the bankruptcy. He urged them to download videos from his online archive and directed them to a new website of his father’s company for purchasing dietary supplements.
Jones has approximately $9 million in personal assets, according to recent court filings. Free Speech Systems has about $6 million in cash and $1.2 million worth of inventory. The court-appointed chief restructuring officer, J. Patrick Magill, is overseeing the company’s operations during the bankruptcy.
Jones and Free Speech Systems filed for bankruptcy protection in 2022 after relatives of the Sandy Hook victims won lawsuit judgments totaling over $1.4 billion in Connecticut and $49 million in Texas. The families testified about being harassed and threatened by Jones’ followers, some of whom confronted them in person, claiming the shooting never happened and their children never existed.
Jones is appealing the judgments in state courts. The families in the Connecticut lawsuit, including relatives of eight deceased children and adults, had requested that Free Speech Systems’ bankruptcy case also be converted to a liquidation. However, the parents in the Texas suit, whose child Jesse Lewis died, wanted the company’s case dismissed to expedite the collection of Jones’ debt.
Lawyers for the company indicated support for liquidation, but attorneys for Jones’ personal bankruptcy case sought dismissal of the company’s case. The families’ lawyers accused Jones of illegally diverting millions of dollars before and during the bankruptcies, a claim Jones denies.
Jones has acknowledged that the Sandy Hook shooting occurred but continues to assert that Democrats and the “deep state” are conspiring to shut down his companies and infringe on his free speech rights. He claims the Sandy Hook families are being used as pawns in this alleged conspiracy, a notion the families’ lawyers dismiss as nonsense.
The families have a pending lawsuit in Texas accusing Jones of illegally diverting and hiding millions of dollars. Jones denies these allegations.
As the legal battles continue, the future of Infowars remains uncertain. The Sandy Hook families are determined to collect the debt owed to them, and Jones is equally determined to continue his fight, even if it means finding new ways to broadcast his controversial views.
