Today marks a significant day for Alex Jones, the infamous conspiracy theorist from Infowars, as well as the Sandy Hook families who have been fighting for justice. After suing Jones for defamation, they have finally reached a long-awaited culmination. A federal bankruptcy judge in Texas is set to make a ruling that will require Jones to liquidate his personal assets, including his media company Free Speech Systems. This is to pay the families nearly $1.5 billion in damages that were a result of Jones spreading false information that the 2012 school shooting never occurred.
By the end of the day, there is a possibility that Jones’ influential show and website, Infowars, may be forced to shut down. Additionally, his personal belongings – including his jewelry and gun collection – could potentially be auctioned off to the highest bidder. This would leave him at risk of losing access to his X account, where he currently boasts 2.3 million followers. Despite these potential losses, Jones can take solace in the fact that Texas law permits him to keep his home, which has a value exceeding $2 million.
Before the court hearing, the families chose not to provide any comments. However, one of their lawyers, Avi Moshenberg, mentioned that the liquidation would result in a victory as Jones would have to bear a significant cost for his actions. He further added that it would be a substantial move towards preventing any more harm by dismantling Jones’ ability to inflict harm on the families.
In contrast, it is expected that the plaintiffs will receive only a small portion of the amount owed to them, and filing for bankruptcy is not likely to completely quiet Jones, as some of the affected families had hoped. Moshenberg noted that it is not possible to enforce silence on Jones through a Chapter 7 liquidation. Though Jones had previously suggested a resolution that would prevent him from discussing the Sandy Hook shooting, the offer was unsuccessful due to various other factors.
Moshenberg expressed frustration regarding the matter.
On Thursday, the court-appointed trustee for FSS recommended that Jones’ company be converted to a Chapter 7 liquidation in addition to his own case. The trustee expressed concern about Jones’ recent behavior in broadcasts, which she described as “much more erratic and unhinged than his typical rhetoric.” She also expressed worry that Jones’ “increasingly poisonous rhetoric,” including the promotion of new Sandy Hook conspiracies, is diminishing the value of his estate and any potential payout for the affected families.
Grief, guilty verdicts and bankruptcy
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Jen Hensel, whose daughter Avielle was tragically killed at Sandy Hook, and whose husband, Jeremy Richman, later took his own life after years of grieving, expressed the overwhelming pain and suffering she and others have endured. “We’ve been tortured, we’ve been abused. And the abuse that we have suffered over the last decade is just overwhelming,” she shared. Despite the jury’s verdict in the defamation case against Jones, Hensel remains steadfast in her mission to stop the abuse and Jones’ harmful actions. She emphasized, “The idea behind all of this was to stop that abuse and to stop [Jones]. This is not OK to be doing this off the blood of innocent children who are murdered and their teachers.”
Jones admitted during the trial that the shootings and deaths were indeed real. However, he has consistently argued that his ramblings and outbursts are safeguarded by the First Amendment. In a deposition, he stated that “we are not in America anymore” if we prohibit questioning public events and free speech simply because it might hurt someone’s feelings. During the trial, he appeared in court with tape over his mouth carrying the message “Save the 1st.”
Mark Bankston, one of the attorneys representing the families, conveyed to the jury that “Speech may be free, but lies come with a cost.” The families firmly rejected the idea that their loved ones’ deaths were the result of negligence and fought to hold those responsible accountable.
In the end, the jurors in both trials reached the same conclusion. Jones was found guilty, and as the verdicts were handed down, he submitted a petition for Chapter 11 bankruptcy protection for his firm, Free Speech Systems. Despite his reluctance to cooperate with the proceedings, Jones recently decided to convert his case to a Chapter 7 liquidation. According to court documents, this move would result in reduced administrative expenses and would be in the best interest of all parties involved. Although Jones’ lawyers declined to comment on the matter, this development marks a significant turning point in the ongoing legal saga.
In 2022, during the Sandy Hook defamation damages trial in Waterbury, Conn., the families of the victims sat in the front row while Infowars founder, Alex Jones, testified. An image credit for the photograph of the event goes to Tyler Sizemore/Hearst Connecticut Media via AP.
Little monies left after any liquidation
According to court documents, Jones has been spending extravagantly even after filing for bankruptcy, with an average monthly expenditure of around $100,000. However, his assets have now diminished to a mere $10 million, which means that each plaintiff will only receive roughly $200,000 once the lawyers and expenses are paid. Prior to the lawsuit, Jones and FSS were believed to have a net worth ranging from $135 million to $270 million, as per expert testimony presented during the Texas trial.
Jones has been accused by families of hiding assets, which he denies. In the event of a Chapter 7 liquidation, a trustee would be appointed to search for any hidden assets.
According to Moshenberg, “He must have been preparing for the worst-case scenario.”
Jones is facing accusations from the families that he utilized a shell company, which is partially owned and managed by his father, to retrieve money for himself. PQPR Holdings Limited, which is a supplier of dietary supplements sold on the Infowars website, claims that it is entitled to over $50 million in secured debt. According to the claims, the Jones-affiliated company is to be paid ahead of the Sandy Hook families. The legitimacy of these debts is being questioned in court by the families’ lawyers, who assert that they are baseless.
According to an attorney representing the families, Jones is now promoting his own line of supplements through his father’s company, instead of Infowars, and urging his followers to purchase them. The attorney alleges that this action goes against bankruptcy laws.
Families have expressed concerns about the possibility of Jones manipulating his future earnings. Even though Chapter 7 won’t prevent Jones from starting a new company, he could still structure his future pay in a way that would make it difficult for families to access it. Jones mentioned on his show recently that he had received numerous job offers from other people. However, the bankruptcy trustee in his case would have the power to pursue his assets indefinitely. The judge’s ruling in this case is different from most bankruptcy cases, as it denies Jones a fresh start due to his intentional and malicious wrongdoing. This means that families can continue to search for any hidden money and future earnings that Jones may have.
According to Bruce Markell, a professor at Northwestern University Pritzker School of Law, the outcome of this situation will cause him to constantly look over his shoulder at the plaintiffs for the rest of his life.
An ironic twist for the Sandy Hook families
According to Markell, families could find themselves in a tricky situation where their ability to recover more of what Jones owes them is contingent on him continuing to produce his type of conspiracy-laden content, which they took legal action against him for.
Markell pointed out the irony that the individuals who have been negatively impacted by Jones’ hateful rhetoric will ironically benefit from the very same bile that he will continue to spew. “That’s the only way they get paid,” he remarked.
According to experts, a bankruptcy court is ill-equipped to administer the type of justice that families may desire in such cases. Markell humorously describes the situation as using a screwdriver to hammer in a nail; the court is simply not the right tool for the job.
According to First Amendment lawyer Kenneth P. White, Jones’ experience may not discourage others as families hope. In fact, those who have significant influence and financial resources may view substantial defamation verdicts as a mere expense of conducting business.
White expressed his disappointment in individuals, such as Alex Jones or former US presidents, who gain attention by making grandiose claims and attacking others. He believes that some people are willing to tolerate such behavior as long as it means they can continue to excite their followers, attract donors to political campaigns, and sell their dubious products. He laments the fact that this is the reality we live in.
Meanwhile, Jones is currently fighting the defamation verdicts that resulted in his bankruptcy. Additionally, he is appealing the judge’s decision, which allows the families to pursue him for all of his future earnings.
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