Judge Denies The Onion’s Acquisition of Alex Jones’s Infowars in Bankruptcy Auction
Judge Christopher Lopez remarked that the court-appointed trustee overseeing the auction made “a good-faith error.”
On December 10, a federal judge in Texas dismissed the auction sale of Alex Jones’s Infowars website to the satirical organization The Onion, stating that the bidding process did not yield the most advantageous offers and expressing concerns regarding the transparency of the auction.
The Onion was declared the successful bidder for the assets of Infowars during the auction held on November 14, which was part of a personal bankruptcy case Jones filed in late 2022 after being ordered to pay nearly $1.5 billion due to multiple defamation lawsuits.
These lawsuits were initiated in Connecticut and Texas by family members of victims from the Sandy Hook Elementary School shooting in 2012, an event that Jones falsely asserted was staged as a government conspiracy to push for stricter gun control.
A total of 20 children and six educators perished in that tragic shooting. Jones has since acknowledged that the incident was “100 percent real.”
After a two-day hearing in Houston, U.S. Bankruptcy Judge Christopher Lopez announced he would not sanction the sale. He dismissed Jones’ accusations of collusion and fraud during the auction but acknowledged that issues—rather than misconduct—were present in the auction process.
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The families from Sandy Hook, who are Jones’ primary creditors, enhanced The Onion’s bid by agreeing to relinquish $750,000 of the sale proceeds in favor of other creditors, ensuring that those creditors received more money than the superior cash offer from First United.
This gesture led the bankruptcy trustee to assess The Onion’s offer at a total value of $7 million.
The judge stated that Christopher Murray, the court-appointed trustee managing the auction, made “a good-faith error” by soliciting final offers for Infowars rather than facilitating further negotiation between The Onion and First United American Companies.
“This should have been reopened, and it should have been opened up for all parties,” Lopez stated. “It’s evident the trustee missed the opportunity for considerable financial gain.”
Lopez further pointed out that the two bids for Infowars were merely a small portion of the amount Jones owes due to defamation lawsuits, highlighting the extent of his financial obligations. He entrusted the trustee with resolving the disputes amongst creditors before attempting to auction off Infowars again.
Lopez’s decision stalls The Onion’s strategy to take control of the Infowars website and its assets.
Collins further stated that the company intends to continue seeking a pathway to purchase Infowars in the upcoming weeks.
“It aligns with our broader goal of creating a more enjoyable and humorous internet, regardless of this case’s outcome,” Collins added.
Christopher Mattei, an attorney representing the Sandy Hook families who took legal action against Jones in Connecticut, also conveyed disappointment over the judge’s decision.
Neil Heslin, father of Sandy Hook Elementary School shooting victim Jesse Lewis, holds a picture of him with Jesse during a hearing in Washington in a file image. Alex Wong/Getty Images
“These families, who have already endured numerous delays and challenges, remain unwavering and determined to hold Alex Jones and his unethical business practices accountable for the damage he has caused,” Mattei stated. “This ruling does not alter the fact that Alex Jones will soon begin repaying his obligations to these families and will continue to do so as long as necessary.”
The Epoch Times has reached out to Jones for comment.
Contributions to this report were made by Reuters and the Associated Press.
