Sandy Hook families ask bankruptcy judge to liquidate Alex Jones’ media company

Relatives of victims of the Sandy Hook Elementary School shooting are asking a bankruptcy judge to liquidate conspiracy theorist Alex Jones’ media companies, including Infowars, rather than allow him to reorganize his business as they seek to collect $1, 5 billion in court verdicts against him.

Lawyers for the families filed an emergency motion Sunday in U.S. Bankruptcy Court in Houston, saying Free Speech Systems has “no prospect” of getting a court-approved reorganization plan and “has failed to demonstrate any hope of beginning to satisfy” its legal claims. , which tie into Jones calling the 2012 school shooting a hoax.

A hearing in the Free Speech Systems bankruptcy case was scheduled for Monday in connection with a dispute over the company’s finances.

Jones went on his web and radio show over the weekend saying there was a conspiracy against him and that he expected Infowars to be shut down in a month or two because of the families’ bankruptcy filings. The comments included profanity-laced rants, and Jones appeared to cry at times.

“There’s really no way out of this,” Jones said on his Sunday show. “I’m kind of in the bunker here. And don’t worry. I’ll be back. The enemy can’t help but make this attack.”

On Saturday, Jones was defiant, saying, “At the end of the day, we’re going to defeat these people. I’m not trying to be dramatic here, but it’s been a tough fight. These people hate our kids.”

A bankruptcy attorney with Free Speech Systems did not immediately return a message seeking comment Monday.

The liquidation could mean that Jones, based in Austin, Texas, would have to sell most of what he owns, including his business and assets, but could keep his home and other personal belongings that are exempt from bankruptcy liquidation. The proceeds would go to his creditors, including the Sandy Hook families. However, there is still no agreement or court decision on how a settlement in Jones’ cases would work.

Jones and Free Speech Systems filed for judicial recovery after the Sandy Hook families won lawsuits in Texas and Connecticut alleging defamation and emotional distress over Jones’ fraud allegations. Jones said on his show that the school shooting that killed 20 first graders and six educators was staged by crisis actors in efforts to get more gun control laws passed.

Jones’ lawyers have been unable to reach an agreement in recent months with attorneys for the Sandy Hook families on how to resolve the bankruptcy cases. Jones’ attorney recently said in court that the cases appear to be headed toward settlement or could be withdrawn. The emergency motion filed Sunday was filed in the Free Speech System case.

If the cases are dropped, it would put Jones back in the same position he was in after the $1.5 billion was awarded in the lawsuits and send efforts to collect damages back to the state courts where the verdicts were reached.

The families of many, but not all, of the Sandy Hook victims sued Jones and won both trials in Connecticut and Texas.

Relatives said they were traumatized by Jones’ comments and the actions of his followers. They testified at the trials about being harassed and threatened by Jones’ believers, some of whom personally confronted the grieving families, saying the shooting never happened and their children never existed.

According to the most recent financial statements filed in bankruptcy court, Jones personally owns about $9 million in assets, including his $2.6 million Austin-area home and other real estate. He also listed his living expenses at about $69,000 in April alone, including about $16,500 for his home expenses, including maintenance, cleaning and insurance.

Infowars’ parent company, Free Speech Systems, which employs 44 people, had nearly $4 million in cash on hand at the end of April. The business made nearly $3.2 million in April, including the sale of dietary supplements, clothing and other items that Jones promotes on his show, while also listing $1.9 million in expenses.

Jones and the Sandy Hook families offered different proposals to settle the $1.5 billion he owed them. Last year, Free Speech Systems presented a plan that would leave between $7 million and $10 million a year to pay creditors.

Later, the families responded with their own proposal: liquidate Jones’ estate and turn the proceeds over to creditors, or pay them at least $8.5 million a year for 10 years – plus 50 percent of any income in excess of 9 million dollars a year.