A bankruptcy judge will hear the conspiracy theorist’s arguments on Monday Alex Jones ‘ attempt to stop the satirical news channel The Onion from purchasing Infowars and turning it into a product a parody.
Jones claims fraud and conspiracy marred the bankruptcy auction, in which The Onion was named the winning bidder for a company tied to him on Nov. 14.
It is not clear how quickly U.S. Bankruptcy Judge Christopher Lopez in Houston will rule. He could allow The Onion to move forward with salesorder a new auction or appoint the other bidder as winner. The question is whether Jones will be allowed to stay at the Infowars studio in Austin, Texas under a new owner who is friendly to him, or whether he will be kicked out by The Onion.
The other bidder, First United American Companies, operates a website that sells nutritional supplements in Jones’ name.
Regardless, Jones has set up a new studio, websites and social media accounts that will allow him to continue broadcasting his show. And his personal account with 3.3 million followers on the social platform X was not part of the sale, although Lopez will decide whether it should be included in the liquidation and sold later.
Jones’ bankruptcy and the liquidation of his assets came about after he was ordered to pay nearly $1.5 billion to relatives of victims of the Sandy Hook Elementary School shooting in Newtown, Connecticut. Jones was found liable for defamation and emotional harm in lawsuits in Connecticut and Texas for repeatedly calling the 2012 shooting that killed 20 first-graders and six teachers a hoax staged by actors to increase gun control.
Proceeds from the liquidation will go to Jones’ creditors, including the Sandy Hook families who sued him.
Jones The Onion’s alleged bid was the result of fraud and conspiracy involving many of those families, the humor site and a court-appointed trustee overseeing the liquidation.
First United American Companies submitted a sealed bid of $3.5 million, while The Onion offered $1.75 million in cash. But The Onion’s bid also included a promise by the Sandy Hook families to forgo some or all of the auction proceeds because they would give other creditors a total of $100,000 more than they would receive in other bids.
The trustee, Christopher Murray, said The Onion’s proposal was better for creditors and called it the winning bid. He has denied any wrongdoing.
Jones and First United American Companies claimed the bid violated Lopez’s rules for the auction because it included multiple entities and lacked a valid dollar amount. Jones also alleged that Murray improperly canceled an expected round of live bidding and only selected from the sealed bids that were submitted.
Jones called the auction “rigged” and a “fraud” on his show, which airs on the Infowars website, radio stations and Jones’ X account.
In a lawsuit, Murray called the allegations “a disappointed bidder’s improper attempt to influence an otherwise fair and open auction process.”
Lopez’s September order on auction procedures made a live bidding round optional. And it gave Murray broad authority to carry out the sale, including the power to reject any offer, no matter how high, that was “contrary to the interests” of Jones, his company and their creditors.
But during a hearing on Nov. 14, Lopez said he was concerned about the process and transparency.
“We’re all going to an evidentiary hearing and I’m going to find out exactly what happened,” he said. “No one should feel comfortable with the results of this auction.”
The assets of Infowars’ parent company, Free Speech Systems, that were up for sale included the Austin studio, Infowars’ video archive, video production equipment, product trademarks, and Infowars’ websites and social media accounts.
Jones is appealing the $1.5 billion in judgments citing freedom of expression, but has acknowledged that the school shooting happened.
Jones has raked in millions of dollars a year in revenue by offering nutritional supplements, clothing, survival gear and other merchandise — including more than $22 million this year through Sept. 30 from his Infowars Store website, according to court documents.
Many of Jones’ personal assets, including real estate, guns and other personal belongings, are also being sold as part of the bankruptcy.
Documents filed in court earlier this year say Jones has about $9 million in personal assets, while Free Speech Systems had about $6 million in cash and more than $1 million in inventory.