Sandy Hook Families Reach Settlement Regarding Alex Jones’s Liquidated Assets
Broadcaster Alex Jones announced that an entity is willing to pay $8 million for Infowars.
On Monday, families of Sandy Hook victims who took legal action against Alex Jones for his claims that the 2012 Connecticut school shooting was a hoax reached an agreement on how to partition the broadcaster’s assets, which are currently in the process of liquidation in federal bankruptcy court.
Jones filed for bankruptcy in 2022 after courts in Connecticut and Texas ruled in favor of the families regarding their defamation cases. The majority of the funds generated from the sale of his Infowars media company, along with the sale of his personal assets, will be allocated to compensate the families.
The families had differing opinions on how to approach Jones’s assets. A subset of families that sued Jones in Texas favored securing more cash payments, while a larger group from Connecticut focused on dismantling Infowars.
According to the settlement reached on Monday, the Texas families will obtain $4 million, with $1 million disbursed within a week of court approval. Additionally, the Texas families will receive 25 percent of any future payments, whereas the Connecticut families will receive the remaining 75 percent.
“The agreement with the Texas families marks a significant milestone and unites the families on the same side,” stated Kyle Kimpler, an attorney representing the Connecticut families.
Avi Moshenberg, who represents the Texas families, echoed that sentiment, saying the two groups are now “100 percent aligned.”
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The trustee, Christopher Murray, opted for sealed bids instead of an open auction format where participants can witness real-time bid activity. Judge Lopez indicated a preference for a competitive auction that could have increased the sale price and generated greater compensation for the Sandy Hook families.
“This should have been opened back up, and it should have been opened back up for everybody,” Lopez remarked. “It’s evident that the trustee left significant revenue potential on the table.”
On Monday, the judge received an update on the Infowars sale, with the same two bidders in contention: The Onion and First United American Companies, which operates Jones’s online supplement business.
First United initially put forth a $3.5 million cash offer but has since increased its proposal to $8 million, more than doubling its original bid.
The case is scheduled to return to court on January 23, when the judge will evaluate the approval of the agreement among the Sandy Hook families.
A lawyer representing Jones indicated that he would discuss the families’ settlement with Jones.
Reuters contributed to this report.
