A federal judge rejected this on Tuesday evening the sale of the conspiracy platform Infowars to satirical news outlet The Onion after Alex Jones claimed a recent bankruptcy auction was rife with illegal conspiracy.
The Onion was named the winning bidder for a Jones-affiliated company on November 14. The decision by U.S. Bankruptcy Judge Christopher Lopez means Jones can remain with Infowars in Austin, Texas. The Onion planned to kick Jones out and relaunch Infowars as a parody in January.
At the end of a lengthy two-day hearing in a Texas courtroom, Lopez criticized the auction process as flawed and said the outcome “left a lot of money on the table.” for families of victims of the 2012 Sandy Hook Elementary School shooting.
“You have to scratch and claw and get everything for them,” Lopez said.
The Onion offered $1.75 million in cash and other incentives for Infowars’ assets during the auction. First United American Companies, which operates a website selling nutritional supplements on Jones’ behalf, is offering $3.5 million.
Lopez cited problems — but not misconduct — with the auction process. He said he did not want another auction and left it to the trustee, who oversaw the auction, to determine next steps.
Trustee Christopher Murray had defended The Onion’s bid during the hearing.
“Only two people showed up to bid and… one was just better than the other,” Murray testified, referring to The Onion. When asked how much better it was, he replied ‘much better’.
Although The Onion’s cash offer was lower than First United American’s, it also included a promise by many of the Sandy Hook families to turn over $750,000 of the auction proceeds owed to them and to other creditors which would give the other creditors more money than they had earned. they would receive under First United American’s bid.
Jones did not attend the proceedings and instead broadcast from his studios in Austin.
“I can’t imagine that the judge would uphold this fraud,” Jones said on his show Tuesday. “I mean, it’s mind-boggling what they did and what they claimed.”
The curator and The Onion deny the allegations made by Jones and the company and accuse them of sour grapes.
The sale of Infowars is part of Jones’ personal bankruptcywhich he submitted at the end of 2022 after it was ordered to pay nearly $1.5 billion in defamation lawsuits in Connecticut and Texas brought by relatives of victims of the Sandy Hook Elementary School shooting.
Jones repeatedly called the shooting that killed 20 children and six educators a hoax staged by actors and aimed at increasing gun control. Parents and children of many of the victims testified in court that they were traumatized by Jones’ conspiracies and threats from his followers.
Jones has since acknowledged that the school shooting occurred in Connecticut.
Most of the proceeds from the sale of Infowars, as well as many of Jones’ personal belongings, will go to the Sandy Hook families. Part of the proceeds will go to Jones’ other creditors.
Murray testified that he did not favor one bidder over another and was not biased.
He also revealed that First United American had submitted a revised offer in recent days, but he said he could not accept it because the Sandy Hook families objected in the Connecticut lawsuit.
The Onion valued its offer, along with the Sandy Hook families’ offer, at $7 million, because that amount was equal to a purchase price that would provide the same amount to the other creditors.
In a court filing last month, Murray’s lawyers called First United American’s request to disqualify The Onion’s bid an “improper attempt by the disappointed bidder to influence an otherwise fair and open election process.”
Murray’s attorney questioned him Tuesday afternoon, after which Jones’ attorney, Ben Broocks, cross-examined him into the early evening.
Broocks noted that the verdicts in the Sandy Hook lawsuit could be overturned in pending appeals and had Murray acknowledge that the Sandy Hook families’ bid for The Onion could fall apart if that happens. That’s because the percentage of auction proceeds they would be entitled to could drop sharply and they would be unable to give the $750,000 from the sale to other creditors.
Broocks also questioned Murray about last-minute changes to the proposed sale to The Onion, with Murray responding that these were the result of differing views on the figures to be settled.
Auctioneer Jeff Tanenbaum on Monday defended both the value of the bid and its selection.
Up for sale were all equipment and other assets at the Infowars studio in Austin, as well as the rights to the social media accounts, websites, video archive and product trademarks. Jones uses the studio to broadcast his far-right, conspiracy theory-filled shows on the Infowars website, his account on the social platform X and radio stations. Many of Jones’ personal belongings are also sold.
Jones has another studio, websites and social media accounts set up in case The Onion gets approval to buy Infowars and kicks him out. Jones has said he can continue using the Infowars platforms if the auction winner is friendly to him.
Jones is appealing the $1.5 billion in judgments citing the right to free speech.
