A federal bankruptcy judge has halted an attempt by the parents of a boy killed in the Sandy Hook Elementary School shooting to collect on a $50 million defamation award from conspiracy theorist Alex Jones. Scarlett Lewis and Neil Heslin, whose 6-year-old son Jesse Lewis was among the 26 victims of the 2012 massacre, had won the lawsuit in Texas in 2022 after Jones falsely claimed the shooting was a hoax.
Earlier this month, a Texas state judge had granted Lewis and Heslin permission to begin collecting assets from Jones’ company, Free Speech Systems, the parent company of Infowars. This decision followed the dismissal of the company’s bankruptcy reorganization case. However, U.S. Bankruptcy Judge Christopher Lopez in Houston ruled that the state judge’s order conflicted with federal bankruptcy law.
Judge Lopez stated that a newly appointed trustee, Christopher Murray, now has control over Jones’ ownership in Free Speech Systems. Murray has the authority to liquidate the company’s assets and distribute the proceeds among all of Jones’ creditors, including other Sandy Hook families who were awarded over $1.4 billion in a similar lawsuit in Connecticut.
“I don’t think the state court was actually informed of all these issues,” Lopez remarked.
Murray plans to shut down Infowars, a multimillion-dollar enterprise Jones built over 25 years by selling dietary supplements, survival gear, and other merchandise. According to recent court filings, Jones has about $9 million in personal assets, while Free Speech Systems has approximately $6 million in cash and $1.2 million in inventory.
Jones’ bankruptcy lawyers did not immediately respond to requests for comment. On his show, Jones claimed that Infowars might cease to exist within two to three months but vowed to restart his broadcasts on a new platform. He also labeled Lewis and Heslin’s efforts to collect his assets as “illegal.”
Murray had filed a motion to halt Lewis and Heslin’s collection efforts, arguing that they would interfere with the liquidation of Jones’ company. Free Speech Systems filed for bankruptcy reorganization in July 2022 during the Texas trial that resulted in the $50 million defamation award. Jones filed for personal bankruptcy later that year after losing the Connecticut lawsuit.
On June 14, Judge Lopez converted Jones’ personal bankruptcy reorganization into a liquidation, meaning many of his assets will be sold off to pay creditors, except for his main home and other exempt property. The same day, Lopez dismissed Free Speech Systems’ bankruptcy case after Jones and the families failed to agree on a final plan.
The bankruptcies had automatically frozen efforts by the Sandy Hook families to collect on their state lawsuit awards. Lawyers for Lewis and Heslin argued that the dismissal of Free Speech Systems’ case allowed them to return to Texas state court to seek an order for the company to turn over money and assets.
“Our clients are frustrated that they will not be allowed to pursue their state court rights after all,” said Mark Bankston, a lawyer for Lewis and Heslin. “Apparently this case will remain in limbo much to Mr. Jones’ delight while the other group of plaintiffs insist they are entitled to nearly all the recovery.”
Lewis and Heslin have been at odds with the relatives in the Connecticut lawsuit over how Jones’ bankruptcies should be resolved and how his assets should be sold. The Connecticut plaintiffs had opposed the dismissal of Free Speech Systems’ bankruptcy, fearing it would lead to a “race” between Sandy Hook families in Texas and Connecticut to claim Jones’ assets first. They supported the trustee’s motion to stop the collection efforts in Texas.
“The Connecticut families have always sought a fair and equitable distribution of Free Speech System’s assets for all of the families, and today’s decision sets us back on that path,” said Christopher Mattei, a lawyer for the Sandy Hook relatives who sued Jones in Connecticut.
The 2012 shooting in Newtown, Connecticut, resulted in the deaths of 20 first graders and six educators. Not all of the victims’ families sued Jones, but those who did testified about the harassment and threats they faced from Jones’ followers, who believed the shooting was a hoax. One parent even reported a threat to dig up his dead son’s grave.
Jones is appealing the judgments in the state courts. He has since stated that he now believes the shooting did happen but argued that his free speech rights allowed him to claim otherwise.
Judge Lopez’s decision to halt the collection efforts underscores the complexity of the legal battles surrounding Jones and his company. As the liquidation process moves forward, the future of Infowars remains uncertain, and the Sandy Hook families continue to seek justice for the trauma they endured.
Source: Associated Press, The Daily Beast
