Judge Approves Liquidation of Alex Jones’ Personal Assets, Rejects Infowars Bankruptcy Plan
A Texas bankruptcy judge has ruled against the proposed liquidation of Alex Jones’ company, Free Speech Systems, which owns Infowars. Instead, the judge has approved the liquidation of Jones’ personal assets, a move aimed at benefiting the creditors.
Judge Chris Lopez stated that the prolonged Infowars bankruptcy process needed to end to allow the families of the Sandy Hook victims to seek compensation through state courts. These families have yet to receive the $1.5 billion in damages awarded to them after Jones falsely claimed the 2012 school shooting was a hoax.
“The right call is to dismiss this case,” Lopez said, expressing that continuing the bankruptcy process would only incur more costs. The judge, emotional at times, remarked on the timing of his decision, which came just before Father’s Day.
The decision leaves questions about Infowars’ future and the legal avenues for the victims’ families to collect the damages owed. Some families’ attorneys believe the dismissal will allow them to pursue Jones’ assets more swiftly than a prolonged bankruptcy procedure.
Marie Reilly, a professor of bankruptcy law at Penn State University, noted that Free Speech Systems will now face its creditors in state courts. Chris Mattei, an attorney for the families, stated that they would move quickly to collect against Infowars’ assets.
“Today is a good day. Alex Jones has lost ownership of Infowars, the corrupt business he has used for years to attack the Connecticut families and so many others,” Mattei said.
Judge Lopez emphasized that the case is far from over and that trustees will eventually decide Infowars’ fate. Bankruptcy law professor Jay Westbrook suggested that Infowars could still be sold by the court-appointed trustee to help pay the damages, but it might not fetch a high price without Jones’ active promotion.
Jones had opposed the liquidation of Infowars and, in recent broadcasts, urged his audience to buy products to support him. After the hearing, Jones expressed his intention to continue operating Infowars to maximize revenue for a wind-down.
Jones’ attorney, Vickie Driver, praised the judge’s decision, stating that Jones had done everything possible to preserve value in Free Speech Systems to pay the plaintiffs.
Earlier on Friday, Judge Lopez approved the liquidation of Jones’ personal assets after he agreed to convert his personal bankruptcy into a Chapter 7 liquidation. This means Jones will lose control of his property, except for certain exempt items, such as a $2 million house in Austin. An interim trustee will oversee Jones’ estate, with $2.8 million from the sale of Jones’ ranch potentially going to the trustee.
Founded in the late 1990s, Infowars has been a platform for Jones to spread conspiracy theories and lies, enriching himself in the process. The proceeds from Jones’ personal bankruptcy will only cover a fraction of what he owes the Sandy Hook families.
Despite the rulings, Jones will still be able to spread his conspiracy theories online, with his social media account restored by X CEO Elon Musk in December 2023 after a five-year ban. However, the Sandy Hook families are hoping to seize Jones’ social media accounts, arguing they are crucial to his Infowars business.
On Friday, Infowars hosts speculated on the outlet’s future, with pre-recorded interviews replacing Jones’ regular program.
