Alex Jones Lawyer Accuses Onion of ‘Voodoo Economics’ in Court

The bankruptcy court fight over The Onion’s bid for the assets of right-wing provocateur Alex Jones’ Infowars platform kicked off with accusations of conspiracy theories and “voodoo economics.”

Houston bankruptcy Judge Christopher M. Lopez heard testimony in court Monday over an auctioneer’s evaluation and comparison of bids between The Onion’s corporate parent, Global Tetrahedron LLC, and a business prepared to keep Jones on the air on his Infowars platform.

A decision from the judge, which didn’t come Monday, will determine whether Jones can maintain control over the platform he’s been broadcasting conspiratorial content on for roughly 25 years. The hearing on the proposed sale is scheduled to resume Tuesday.

Trustee Christopher Murray is seeking to liquidate Jones’ estate in bankruptcy to help him pay down approximately $1.3 billion in judgments related to false statements Jones made calling the 2012 Sandy Hook Elementary School shooting a hoax.

Murray’s attorney, Joshua W. Wolfshohl of Porter Hedges LLP, told Lopez on Monday that the only issue he should consider is the trustee’s business judgment in selecting the winning bidder. Objections from Jones and the losing bidder have no merit, he said.

“The vast majority of their complaints are just fantastic and imagined conspiracy theories,” Wolfshohl said.

The Sandy Hook shooting victims’ families who won judgments in Connecticut state court teamed up with The Onion to boost the value of its bid by agreeing to waive their right to collect proceeds from the sale.

The trustee picked The Onion’s bid, valued at more then $7 million, over that of First United American Cos. LLC, which bid $3.5 million but offered a larger cash component than The Onion. First United, a company Jones has said he’s “very familiar” with, has also objected to The Onion’s takeover.

The Connecticut families’ waiver of the right to proceeds to boost The Onion’s bid isn’t actually a higher bid than the loser’s $3.5 million bid, Jones attorney Ben C. Broocks of Broocks Law Firm PLLC said.

“This is the smoke and mirrors, voodoo economics,” Broocks said.

First United plans to continue broadcasting Infowars if it’s designated the winner, the trustee has said in court papers.

The Onion aims to launch a new Infowars platform by January 2025 in conjunction with advocacy group Everytown for Gun Safety by January 2025. Everytown for Gun Safety, which advocates gun-safety measures, is backed by Michael Bloomberg. Bloomberg Law is operated by entities controlled by Michael Bloomberg.

Though the proposed sale itself is still being argued, one dispute was resolved Monday. The trustee modified the sale terms to remove the transfer of Infowars accounts on Elon Musk’s X Corp., formerly known as Twitter, after the social media giant argued that it—not Jones himself—owns the handles, so they can’t be sold as an asset through the bankruptcy court transaction.

Murray is expected to take the stand Tuesday.

Jones is represented by Jordan & Ortiz PC and Broocks Law Firm PLLC. The Chapter 7 trustee is represented by Jones Murray LLP and Porter Hedges LLP. Global Tetrahedron is represented by Seward & Kissel LLP. The Sandy Hook families are represented by Cain & Skarnulis PLLC, Koskoff Koskoff & Bieder PC, and Paul Weiss Rifkind Wharton & Garrison LLP. X Corp. is represented by Latham & Watkins LLP.

The case is Alexander E. Jones, Bankr. S.D. Tex., No. 22-33553, hearing 12/9/24.