Alex Jones, the founder of Infowars, was captured on camera speaking to the media outside Waterbury Superior Court during his 2022 defamation trial in Waterbury, Conn. The image credit goes to Joe Buglewicz/Getty Images North America.
Today marks a significant day for Alex Jones, the infamous conspiracy theorist from Infowars, as he faces the consequences of his actions. For the Sandy Hook families who sued Jones for defamation, this is a long-awaited culmination. A federal bankruptcy judge in Texas is anticipated to compel Jones to liquidate his personal assets, which includes his media company, Free Speech Systems, to compensate the families with almost $1.5 billion in damages for spreading false information that the 2012 school shooting did not occur.
By the end of the day, there is a possibility that Jones’ popular Infowars show and website may face a shutdown. Moreover, items belonging to him including his collection of guns and jewelry could be sold off in a fire sale. Additionally, he may lose access to his X account, where he currently has a following of 2.3 million. Fortunately, under the Texas law, Jones can retain his home, which is valued over $2 million.
Before the court hearing, the families chose not to provide any comments. However, Avi Moshenberg, one of their attorneys, mentioned that the liquidation of assets would be seen as a triumph since it would impose a severe penalty on Jones for his actions. Moshenberg further stated that it would be a significant stride towards putting an end to Jones’ capability to cause any more damage to the families.
In contrast, it seems that the plaintiffs will only receive a minuscule portion of the compensation they deserve, and it is doubtful that filing for bankruptcy will effectively stop Jones from speaking out, which was a hope of some of the affected families. Moshenberg pointed out that a Chapter 7 liquidation cannot compel him to keep quiet. It is worth noting that Jones had put forth an offer to settle with the families, which included a provision that he would refrain from discussing the Sandy Hook shooting. Nevertheless, this proposal did not come to fruition due to a variety of reasons.
Moshenberg expressed frustration about the issue.
In a recent development, the court-appointed trustee for FSS has urged the judge to convert Jones’ company to a Chapter 7 liquidation. This comes after the trustee expressed concern over Jones’ behavior in recent broadcasts, which she described as “much more erratic and unhinged than his typical rhetoric.” She further added that Jones’ “increasingly poisonous rhetoric,” which includes promoting new Sandy Hook conspiracies, is not only damaging the value of his estate but also jeopardizing any potential payout for affected families.
Grief, guilty verdicts and bankruptcy
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Jen Hensel, whose daughter Avielle was killed at Sandy Hook, and whose husband, Jeremy Richman, later died by suicide after years of grieving, expressed the overwhelming pain and suffering that the families of the victims have endured over the last decade. “We’ve been tortured, we’ve been abused,” she said. Hensel also condemned the behavior of Jones, who had questioned Richman’s death. In an interview with NPR shortly after the 2022 jury verdict in a defamation case, Hensel stated that the purpose of the legal action was to put an end to the abuse and to hold Jones accountable for his actions. She emphasized that it is not acceptable to profit from the tragedy of innocent children and their teachers who lost their lives in the Sandy Hook shooting.
Jones admitted to the reality of the shootings and deaths during the trial. Despite this, he has consistently argued that his rants and musings are protected by the First Amendment. During court proceedings, he even appeared with tape over his mouth, bearing the words “Save the 1st.” In a deposition, he expressed his concern that if public events and free speech can be questioned and banned simply because they might offend someone, then America is no longer a free country.
During the trial, families vehemently opposed the idea that the defendant’s speech should be excused. According to Mark Bankston, one of their lawyers, “Speech may be free, but dishonesty comes with a price tag.”
In the end, the juries in both cases reached the same conclusion and delivered their verdicts of guilt. This prompted Jones to seek Chapter 11 bankruptcy protection for his company, Free Speech Systems, and himself. Despite years of reluctance to cooperate with the bankruptcy proceedings, Jones finally agreed to convert his case to a Chapter 7 liquidation last week. While his lawyers declined to comment on the matter, court documents suggest that this move would reduce administrative expenses and serve the best interest of all parties involved.
In 2022, during the Sandy Hook defamation damages trial in Waterbury, Connecticut, Infowars founder Alex Jones testified in front of the families of the victims, who were seated in the front row. An image credit 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 while undergoing bankruptcy proceedings. He has been spending an average of $100,000 per month, despite his assets decreasing to around $10 million. This implies that after the liquidation of his assets and the settlement of legal fees and expenses, each plaintiff would only be entitled to approximately $200,000. It is worth noting that prior to the lawsuits, Jones and FSS had an estimated net worth of between $135 million and $270 million, as per expert testimony presented during the Texas trial.
Jones has been accused by families of hiding assets, which he denies. If he were to undergo Chapter 7 liquidation, a trustee would be appointed to search for any such assets.
According to Moshenberg, “He must have been preparing for the worst-case scenario.”
The families are accusing Jones of utilizing a shell company, which is partly owned and managed by his father, to recover money for himself. PQPR Holdings Limited, a supplier of the dietary supplements sold on the Infowars website, asserts that it is owed over $50 million in secured debt. If proven genuine, the Jones-affiliated company would have the right to be paid before the Sandy Hook families. However, the families’ attorneys are questioning the legitimacy of the debts and are currently disputing them in court.
According to an attorney representing the families, Jones has been promoting his own range of supplements through his father’s company to his followers, rather than recommending Infowars. This action has been deemed as violating bankruptcy laws.
Families have expressed their concern about the possibility of Jones manipulating any future earnings. While Chapter 7 bankruptcy may not prevent Jones from starting a new company, he could structure his future pay in a way that makes it difficult for families to access. Jones mentioned on his show this week that he received several offers to work for other people. However, the bankruptcy trustee overseeing Jones’ case has the power to pursue his assets indefinitely. Unlike most cases where bankruptcy clears debts and offers debtors a fresh start, the judge has ruled that Jones is not entitled to a clean slate due to his malicious and intentional wrongdoing. Therefore, families can continue searching for any hidden money and future earnings without a time limit.
According to Bruce Markell, a professor at Northwestern University Pritzker School of Law, the aftermath of this situation will leave him constantly looking over his shoulder at the plaintiffs for the rest of his life.
An ironic twist for the Sandy Hook families
Markell highlights a potential dilemma for families who have sued Jones for the damages he has caused. If Jones continues with his controversial broadcasting, the families may have a better chance of receiving the compensation they are owed. However, supporting Jones’ behavior goes against their legal stance in the lawsuit.
Markell pointed out the irony that the individuals who have been negatively affected by Jones’ offensive language may benefit financially from the very content he produces. “It’s quite ironic that those who have been harmed by Jones’ bile will ultimately profit from the very bile he continues to spew,” Markell stated. “This is the only way they can earn a living.”
According to experts, administering what families perceive as justice in a situation like this is beyond the scope of a bankruptcy court. Markell humorously describes it as using a screwdriver to hammer in a nail, which is not the most effective way to achieve the desired outcome.
According to First Amendment lawyer Kenneth P. White, despite the desire of families for Jones’ legal consequences to serve as a warning to others, it may not have this effect. In fact, those individuals and companies with extensive resources and influence may simply view significant defamation verdicts as just another expense of conducting business.
White expressed his disappointment in the fact that some individuals, such as Alex Jones or former presidents, continue to attract attention by making exaggerated claims and attacking others. Despite the negative consequences, some individuals are willing to pay the price to keep their followers engaged and their political campaigns funded. This realization is a somber one, as it highlights the power of manipulation and the willingness of some to take advantage of it.
On the other hand, Jones is currently in the process of appealing the verdicts for defamation that led him to declare bankruptcy. Additionally, he is challenging the judge’s ruling that allows the families to pursue him for all of his future earnings.