A federal bankruptcy judge has rejected a settlement proposal in the ongoing Alex Jones bankruptcy case, further complicating efforts to compensate Sandy Hook families.
At a Glance
- U.S. Bankruptcy Judge Christopher Lopez rejected a settlement proposal in Alex Jones’ bankruptcy case
- The decision delays Sandy Hook families from collecting $1.3 billion in defamation damages
- Judge Lopez ruled he cannot approve the deal as it involves assets of Free Speech Systems, which is no longer in bankruptcy
- The ruling allows only the sale of Jones’ ownership stake in Free Speech Systems, not its assets
- Alex Jones celebrated the decision on his show, urging followers to support him financially
Judge Rejects Settlement Proposal
U.S. Bankruptcy Judge Christopher Lopez has taken a firm stance in the ongoing Alex Jones bankruptcy proceedings by rejecting a settlement agreement proposed by Sandy Hook victims’ families. The decision came during a brief legal hearing and underscores the complex legal landscape surrounding Jones’ financial troubles.
The rejected settlement would have allowed Texas families to renew bankruptcy claims against Infowars’ parent company, Free Speech Systems. However, Judge Lopez dismissed this possibility, citing the previous dismissal of the corporate bankruptcy case in June 2024.
Limitations on Asset Sales
In a significant clarification, Judge Lopez informed the trustee that Infowars’ assets could no longer be sold, only its equity. This decision marks a reversal from his previous stance and has caused confusion among the parties involved.
The judge emphasized the need for finality in bankruptcy proceedings to allow families to pursue state court remedies. This decision effectively blocks the previously proposed auction bids with non-cash components, including one submitted by The Onion and the Connecticut families.
The rejection of the settlement proposal further delays the Sandy Hook families from collecting the $1.3 billion in defamation damages awarded nearly seven years ago. These damages stem from Jones’ conspiracy theories about the 2012 Sandy Hook shooting, which led to harassment of the victims’ families.
The Connecticut families aim to shut down Infowars, while Texas families seek compensation. The rejected settlement would have provided immediate payouts to Texas families and divided sale proceeds between the two groups.
Alex Jones and his business declared bankruptcy in 2022 after defamation judgments exceeding $1.5 billion. Judge Lopez has since dismissed the corporate bankruptcy case and moved Jones’ personal bankruptcy to Chapter 7 liquidation. The future of Infowars’ assets remains uncertain, with resolution hoped for by 2025.