Relatives of the victims of the Sandy Hook Elementary School shooting are asking a bankruptcy judge for liquidation conspiracy theorist Alex Jones’ media company, including Infowars, rather than allowing him to reorganize his company while they try to collect $1.5 billion in lawsuits against him.
Lawyers for the families filed an emergency motion in the US Bankruptcy Court in Houston on Sunday, saying Free Speech Systems has “no prospect” of getting a reorganization plan approved by the court and “has failed to demonstrate any hope to meet their legal claims.” , which relate to Jones taking the School shooting in 2012 a hoax.
A hearing was scheduled for Monday in the Free Speech Systems bankruptcy case related to a dispute over the company’s finances.
Jones said on his web and radio show this weekend that there was a conspiracy against him and he expected Infowars to be closed within a month or two due to the families’ bankruptcy court. The comments included profanity-laden rants, and Jones appeared to be crying at some points.
“There’s really no way out,” Jones said on his show Sunday. ‘I’m a bit in the bunker here. And don’t worry. I will come back. The enemy has no choice but to carry out this attack.”
On Saturday, Jones was defiant, saying, “At the end of the day, we’re going to beat these people. I’m not trying to be dramatic here, but it’s been an uphill battle. These people hate our children.”
A bankruptcy attorney for Free Speech Systems did not immediately return a message seeking comment Monday.
Liquidation could mean that Jones, based in Austin, Texas, would have to sell most of his assets, including his business and assets, but could keep his home and other personal assets that are exempt from bankruptcy liquidation. The proceeds would go to his creditors, including the Sandy Hook families. However, there has not yet been an agreement or court ruling on how a liquidation would work in Jones’s business.
Jones and Free Speech Systems have both submitted applications bankruptcy reorganization after the Sandy Hook families won lawsuits in Texas and Connecticut claiming defamation and emotional distress over Jones’ hoax claims. Jones said on his show that the school shooting that killed 20 elementary school students and six educators was staged by crisis actors in an effort to pass more gun control laws.
Jones’ attorneys have been unable to reach an agreement with attorneys for the Sandy Hook families in recent months to resolve the bankruptcy cases. Jones’ lawyer recently said in court that the cases appear to be heading for liquidation or possibly be dropped. The emergency motion filed Sunday was filed in the Free Speech System case.
If the cases are dropped, Jones would be put back in the same position he was in after the $1.5 billion lawsuits were awarded, and efforts to collect damages would be sent back to the state courts where the judgments were handed down.
The families of many, but not all, of Sandy Hook’s victims sued Jones and won the two lawsuits in Connecticut and Texas.
The family members said they were traumatized by Jones’ comments and the actions of his followers. They testified about being at the trials 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 has about $9 million in assets, including his $2.6 million Austin-area home and other real estate. He also mentioned that his living expenses in April alone were approximately $69,000, including approximately $16,500 for expenses on his home, including maintenance, housekeeping 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 company earned nearly $3.2 million in April, including from sales of the nutritional supplements, clothing and other items Jones promotes on his show, while he reported $1.9 million in expenses.
Jones and the Sandy Hook families have made several proposals to settle the $1.5 billion he owes them. Last year, Free Speech Systems filed a plan that would leave $7 million to $10 million a year to pay off creditors.
The families later came up with their own proposal: either liquidate Jones’ estate and give the proceeds to creditors, or pay them at least $8.5 million a year for 10 years – plus 50% of any income above $9 million per year year.