A bankruptcy judge in Texas rejected the bid of satire site the Onion to acquire the assets of Infowars — the bankrupt outlet of conspiracy theorist Alex Jones — saying the auction process lacked clarity and that the families of the Sandy Hook shooting victims deserved more money than the Onion’s parent had bid.
Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas on Tuesday evening declined to approve the Onion’s winning bid — of $1.75 million in cash — because it “left a lot of money on the table” for Connecticut families who had won a $1.4 billion judgment in a defamation lawsuit against Jones, the AP reported. “You got to scratch and claw and get everything you can for them,” the judge said.
“I don’t think it’s enough money,” Lopez said in ruling on the matter Tuesday, as reported by NBC News.
Lopez, in announcing his ruling, said he did not want another auction for Infowars and the judge left it up to the trustee who oversaw the auction to determine next steps, per the AP.
The trustee who oversaw the auction, Christopher Murray, had defended the Onion’s bid as superior to that of the only other bidder, First United American Companies, which operates the ShopAlexJones.com website. In a Nov. 14 status meeting with the court, Murray acknowledged that the Onion did not have a higher cash bid than First United, which had bid $3.5 million. However, Murray said, the Onion’s deal was selected as the better offer because the Connecticut families agreed to forgo their proceeds to much of money Jones’ owes them in order to pay other creditors. In a subsequent court filing, Murray said the Onion’s bid was valued at $7 million when factoring in the backing of the Sandy Hook families.
In a statement Chris Mattei, attorney for the Connecticut families and partner at Koskoff Koskoff & Bieder, said: “More than two years after earning historic verdicts in Connecticut, we are disappointed the Bankruptcy Court rejected a purchase of Infowars that the court-appointed trustee recommended as being in the best interest of the creditors. These families, who have already persevered through countless delays and roadblocks, remain resilient and determined as ever to hold Alex Jones and his corrupt businesses accountable for the harm he has caused. This decision doesn’t change the fact that, soon, Alex Jones will begin to pay his debt to these families and he will continue doing so for as long as it takes.”
The Onion, in a statement issued by Global Tetrahedron CEO Ben Collins, said, “We are deeply disappointed in today’s decision, but The Onion will continue to seek a resolution that helps the Sandy Hook families receive a positive outcome for the horror they endured.” Collins said the company will “continue to seek a path towards purchasing Infowars in the coming weeks. It is part of our larger mission to make a better, funnier internet, regardless of the outcome of this case.”
Collins’ statement continued, “We appreciate that the court repeatedly recognized The Onion acted in good faith, but are disappointed that everyone was sent back to the drawing board with no winner, and no clear path forward for any bidder. And for all of those as upset about this as we are, please know we will continue to seek moments of hope. We are undeterred in our mission to make a funnier world.”
Last month, the Onion gleefully revealed its winning bid for Infowars, which was sued into bankruptcy (as was Jones) after the families of victims in the Sandy Hook mass shooting in Connecticut won a judgment in 2022 against Jones in a defamation suit. Jones had repeatedly lied and posited baseless conspiracy theories about the Sandy Hook massacre.
However, Lopez ordered a new hearing to review the auction process, which he previously expressed concerns about. First United and Jones complained that the trustee overseeing the auction did not comply with Lopez’s instructions in the bankruptcy proceeding, as the bids were submitted under seal.
In December 2012, 20 students and six adults died in the shooting at the school in Newtown, Conn. Jones had called the mass murder a “hoax” and falsely accused the parents of the children killed at the elementary school of colluding with the U.S. government in a supposed plot to restrict gun rights. During the defamation trial in Texas in 2022, Jones testified that he now believes the Sandy Hook shooting was “100% real.”
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