Alex Jones Bankruptcy Judge Denies Sandy Hook Families’ Deal (1)

A judge overseeing right-wing conspiracy theorist Alex Jones’ bankruptcy rejected a settlement among families of Sandy Hook Elementary School shooting victims because it included claims against Infowars’ parent company, which is no longer in bankruptcy.

Judge Christopher Lopez of the US Bankruptcy Court for the Southern District of Texas during a Wednesday hearing told the families and Jones’ Chapter 7 trustee that they could either try to resolve issues over the allocation of assets to satisfy defamation-related judgments in state court or come back with another settlement proposal.

“What the debtor needs and what these families need is finality,” Lopez said.

The families have secured more than $1.3 billion in judgments stemming from Jones’ false claims that the 2012 massacre was a hoax. Under the proposed deal that Lopez rejected, the families that won judgments in a Texas court would have received a $4 million distribution from the Jones estate and the right to collect 25% of any distributions exceeding $12 million that would have been made to the families that won in a Connecticut court.

“At its core, this is something I can’t approve,” Lopez said.

Jones opposed the deal, calling it a guise to dismiss his appeals of the hefty court judgments.

The settlement could have allowed some of the Texas families’ claims to reach $480 million against Free Speech Systems LLC, the parent company of Jones’ media platform, Infowars.

But Free Speech Systems’ bankruptcy was dismissed last year, meaning disputes with the company can’t be handled in bankruptcy court, Lopez said.

He previously rejected a bid from satirical site, the Onion, for the company’s assets after finding the auction lacked transparency. Lopez said Wednesday he didn’t want another complicated process.

First United American Cos., which is aligned with Jones, recently more than doubled its own $3.5 million offer to purchase Infowars’ assets. First United operates the website for online supplement store ShopAlexJones.com.

However, Lopez said Wednesday that he doesn’t trust the process that occurred in the attempt to sell the assets.

“If you want to sell the equity, then sell the equity,” he said.

Jones is represented by Broocks Law Firm PLLC and Jordan & Ortiz PC. The Chapter 7 trustee is represented by Jones Murray LLP and Porter Hedges LLP.

The Connecticut families are represented by Cain & Skarnulis PLLC, Koskoff Koskoff & Bieder PC. The Texas families are represented by Willkie Farr & Gallagher LLP, Lawson & Moshenberg PLLC, and Chamberlain, Hrdlicka, White, Williams & Aughtry PC.

The case is In re: Alexander Jones, Bankr. S.D. Tex., hearing 2/5/25.