Alex Jones Sues Sandy Hook Parents, Onion Over Infowars Bid (1)

Nov. 19, 2024, 4:42 PM UTCUpdated: Nov. 19, 2024, 6:50 PM UTC

Right-wing conspiracy theorist Alex Jones has sued the parents of Sandy Hook Elementary School shooting victims, The Onion’s parent company, and a bankruptcy trustee, alleging they colluded to win an auction for his Infowars media company.

Jones is looking to depose some families of Sandy Hook victims and representatives of Global Tetrahedron LLC as part of his effort to disqualify their combined bid, according to a suit filed Monday in the US Bankruptcy Court for the Southern District of Texas.

The lawsuit comes as trustee Christopher Murray seeks to liquidate Jones’ estate in bankruptcy to help him pay down approximately $1.5 billion in judgments related to false statements Jones made calling the 2012 Sandy Hook shooting a hoax.

Murray last week designated Global Tetrahedron’s $1.75 million bid as the winner of most of the assets of Jones’ Infowars parent company, Free Speech Systems LLC. As part of the winning bid, some of the Sandy Hook families agreed to waive their right to collect proceeds from the sale, which helped The Onion secure the top spot as the best-value offer, Murray said.

That announcement last week unleashed a wave of protests from both Jones and the backup bidder, First United America Companies LLC, which operates the website for online supplement store ShopAlexJones.com.

First United on Monday also moved to disqualify the Onion’s bid, arguing that “collusion” took place to prevent its $3.5 million cash offer from winning the auction.

Chris Mattei, an attorney for the Sandy Hook families who won a $1.4 billion defamation judgment against Jones in Connecticut, said his clients are prepared to press on.

“At every step, the families we represent have sought to hold Jones accountable to the fullest extent of the law and to protect others from his lies,” he said. “They will not be intimidated, and they look forward to bringing this process to a just conclusion at the earliest possible date.”

Murray called the auction process “fair and open” in a response Monday, and said in a separate filing that the Onion’s bid was valued at more than $7 million, making it the clear winner. Murray accused First United of trying to bully him and his advisers into accepting an inferior bid, and argued that the loser’s accusations were without evidence an attempt to mislead the court.

Jones, whose attorney at a court hearing last week said he wasn’t a party to any bid, said First United “is the true winner” of the auction. But in a declaration Monday, Jones said he’s “very familiar” with First United and its principal, Charles Cicack.

“We’re obviously disappointed he’s lashing out by creating conspiracies, but we’re also not surprised,” The Onion CEO Ben Collins said in a statement.

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.

The case is In re Alexander E. Jones, Bankr. S.D. Tex., No. 22-33553, complaint filed 11/18/24.

To contact the reporter on this story: James Nani in New York at jnani@bloombergindustry.com; Alex Wolf in New York at awolf@bloomberglaw.com

To contact the editor responsible for this story: Maria Chutchian at mchutchian@bloombergindustry.com

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