Right-wing conspiracy theorist Alex Jones is facing resistance from his own company and a court-appointed bankruptcy trustee to his request for $680,000 in disputed, unpaid salary.
Free Speech Systems—the parent company of Infowars—and the trustee overseeing its Chapter 11 case asked a judge to reject Jones’ request for the payment. Jones is in the midst of his own, separate bankruptcy as well.
Free Speech and Jones previously negotiated a $1.3 million annual salary for the conservative firebrand, Free Speech said in a Monday filing in the US Bankruptcy Court for the Southern District of Texas. Jones and Free Speech filed for bankruptcy after they were ordered to pay nearly $1.4 billion in damages to families of Sandy Hook Elementary School shooting victims.
After filing for Chapter 11, the company’s ability to pay Jones “an appropriate salary” was limited by court-approved budgets, Free Speech said. The budgets reduced Jones’ salary to $20,000 every two weeks since September 2022, down from $50,000 previously, according to court filings.
Jones in July asked the court to direct Free Speech to immediately pay $680,000 in unpaid salary. The reduction in his compensation has resulted in a $290,000 administrative claim that has increased by $30,000 per month, he argued.
“FSS disputes the amount of the administrative claim alleged in the Motion and would show that certain offsets should further reduce the amount of any claim,” Free Speech said in the Monday filing.
Further, the Bankruptcy Code doesn’t provide for the immediate payment of the claim, Free Speech said.
The trustee overseeing the Free Speech estate entered the fray on Tuesday, backing the company’s arguments against the back payments.
Free Speech filed for Chapter 11 protection in July 2022. Jones filed his own personal bankruptcy in December.
Judge Christopher Lopez, who is overseeing both cases, has previously indicated he’d be willing to increase Jones’ salary, saying the host is critical to the InfoWars business. Jones has previously argued in court filings that he can’t pay the nearly $1.4 billion he owes Sandy Hook families with less than $12 million in assets he has on hand.
Free Speech is represented by the Law Offices of Raymond W. Battaglia PLLC.
Jones is represented by Crowe & Dunlevy PC and Jodan & Ortiz PC.
The case is Free Speech Systems LLC, Bankr. S.D. Tex., No. 4:22-60043, 10/2/23.
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