The Onion, a satirical news organization, is attempting to acquire Infowars, the conspiracy theory platform owned by Alex Jones. This matter returned to a Texas courtroom on Monday, where a judge examined accusations from Jones regarding irregularities, collusion, and fraud in the recent bankruptcy auction.
In Houston, U.S. Bankruptcy Judge Christopher Lopez is scrutinizing the November auction, particularly the decision by the trustee to select The Onion’s bid over an offer from a Jones-affiliated company that was twice as high. The judge indicated that the hearing would extend into Monday evening and resume on Tuesday afternoon.
The proposed sale of Infowars is a critical aspect of Jones’ personal bankruptcy proceedings, which he initiated in late 2022 after being ordered to compensate nearly $1.5 billion in defamation lawsuits. These cases were brought forth by families of victims from the tragic Sandy Hook Elementary School shooting in 2012, an event that Jones has falsely labeled as a hoax intended to promote gun control.
Most funds generated from the Infowars sale, along with numerous personal assets belonging to Jones, are designated to support the Sandy Hook families in fulfilling the financial judgments awarded against Jones. Remaining proceeds will benefit other creditors of Jones.
During the auction, The Onion submitted a bid of $1.75 million for Infowars’ assets, while First United American Companies, which operates a website selling nutritional supplements under Jones’ name, offered $3.5 million. The Onion’s bid also included a commitment from several Sandy Hook families to relinquish a portion of their potential auction proceeds, thereby providing an extra $100,000 to other creditors compared to alternative bids.
The trustee, Christopher Murray, defended his choice of The Onion, asserting that it was in the best interest of creditors, as they would ultimately receive more money. He emphasized that the auction process was conducted fairly and without any misconduct.
Jones’ legal representative, Ben Broocks, challenged the legitimacy of Murray’s decision, suggesting that a recent deposition revealed wrongful actions. He raised concerns regarding the valuation of The Onion’s bid, arguing that it should be considered at $7 million due to the additional incentives provided by the Sandy Hook families.
During Monday’s session, an executive from the auction company provided testimony regarding the sale. Court documents reveal that Jones and First United American Companies have accused Murray, The Onion, and the Sandy Hook families of illegal collaboration, fraudulent activities, and violations of the auction rules set forth by the judge.
These accusations were firmly denied by Murray, The Onion, and the Sandy Hook families. In his own official filing, Murray characterized the allegations as an “improper attempt by a disappointed bidder to skew the results of an otherwise transparent auction process.”
The auction included the complete set of equipment and assets from the Infowars studio located in Austin, Texas, along with its social media accounts, websites, video archives, and trademarks. This studio platform is where Jones conducts his far-right, conspiracy-driven programming on Infowars’ website, on the social media platform X, and through various radio stations.
In anticipation of The Onion potentially taking over, Jones has already established another studio and developed new websites and social media accounts. He plans to continue his activities if the new owner is favorable towards him.
While Jones is appealing the $1.5 billion judgments against him, citing his right to free speech, he has admitted that the Sandy Hook shooting did occur. Recently, a Connecticut appeals court reduced the initial $1.44 billion judgment by $150 million, yet upheld the majority of the compensation owed. Jones’ legal team intends to petition Connecticut’s highest court for a review of this decision, and he is also contesting a $50 million judgment from a similar defamation lawsuit in Texas.
