Judge in Alex Jones’ Bankruptcy Case to Hear Arguments on The Onion’s Bid for Infowars
A bankruptcy judge is set to hear arguments on a notable case involving conspiracy theorist Alex Jones on Monday. Central to the proceedings is Jones’ attempt to prevent the satirical news outlet, The Onion, from acquiring Infowars and turning it into a parody platform.
Alex Jones alleges that the bankruptcy auction through which The Onion emerged as the winning bidder on November 14th was riddled with fraud and collusion. The auction outcome saw The Onion overtaking a company linked to Jones in the bidding process. However, the direction in which U.S. Bankruptcy Judge Christopher Lopez in Houston might steer the ruling remains uncertain. He could allow The Onion to proceed with its purchase, mandate a new auction, or declare the other bidder victorious. What’s at stake is whether Jones will continue to host his show from the Infowars studio in Austin, Texas, under new ownership, or if he will be ousted by The Onion.
The alternate bidder, First United American Companies, operates a website under Jones’ name, primarily selling nutritional supplements. Regardless of the auction’s outcome, Jones has already established a new studio, websites, and social media accounts to ensure his show continues. However, a key component of the sale—the validity of including Jones’ personal account with 3.3 million followers on the social platform X—is still pending a decision by Judge Lopez.
In a fresh court filing, attorneys for X objected to the sale of the accounts of Jones and Infowars. They assert that X owns these accounts and has not provided consent for their sale or transfer. Jones has expressed admiration for X owner Elon Musk on his broadcasts, even suggesting that Musk should consider purchasing Infowars, though Musk has not publicly responded to this idea nor participated as a bidder.
The unfolding scenario stems from the aftermath of legal judgments against Jones, where he was ordered to pay nearly $1.5 billion to families affected by the Sandy Hook Elementary School shooting. Jones was found liable for defamation and emotional distress for falsely labeling the 2012 tragedy as a hoax intended to push stricter gun control measures.
Proceeds from the bankruptcy liquidation are designated for Jones’ creditors, notably the Sandy Hook families involved in the lawsuits against him. In the auction, The Onion’s bid was alleged by Jones to result from deceit and collusion involving the affected families, the humor platform, and a court-appointed trustee supervising the liquidation.
Questions arose due to First United American Companies placing a $3.5 million sealed bid, while The Onion offered $1.75 million in cash. The Onion’s proposal also included an agreement from Sandy Hook families to relinquish some or all auction proceeds due to them, providing an additional $100,000 to other creditors than they would have received from alternative bids. Trustee Christopher Murray deemed The Onion’s bid more favorable for creditors, declaring it victorious and denying any misconduct allegations.
Jones and First United American Companies contend that The Onion’s bid violated Lopez’s auction rules by involving multiple entities and lacking a straightforward dollar value. Additionally, Jones argued that Murray inappropriately canceled the anticipated live bidding round, opting instead to accept only sealed bids.
Jones vociferously decried the auction as “rigged” and a “fraud” during his broadcasts on the Infowars website, radio stations, and his X account. Furthermore, he filed a countersuit against Murray, The Onion’s parent company, and the Sandy Hook families in bankruptcy court. Meanwhile, Murray branded the accusations a “desperate attempt” to stall the Infowars sale to The Onion and accused Jones, alongside his lawyers and First United American Companies’ attorneys, of executing a “vicious smear campaign with patently false accusations.” He also suggested collaboration between Jones and First United American Companies in efforts to acquire Infowars.
Judge Lopez had previously articulated concerns regarding the auction process and transparency. He ordered an evidentiary hearing to gain clarity on the proceedings and declared that no one should be complacent with the auction’s outcomes.
Assets from Infowars’ parent company, Free Speech Systems, that were subject to sale included the Austin studio, the Infowars video archive, video production equipment, product trademarks, and its websites and social media presence.
Jones is challenging the $1.5 billion judgment on free speech grounds but has conceded that the school shooting was real. Despite financial setbacks, Jones has prospered by selling nutritional supplements, clothing, survival gear, and other products, generating over $22 million from his Infowars Store website within the current year up to September 30. Court documents reflect that Jones holds approximately $9 million in personal assets, while Free Speech Systems possesses around $6 million in cash and over $1 million in inventory.
Additional personal assets, including real estate, firearms, and other belongings of Jones, are also being liquidated as part of the bankruptcy process. As the bankruptcy court prepares to hold the hearing, the future of Infowars hangs in the balance, awaiting the crucial decision from Judge Lopez.
