Sandy Hook Families Settle Disputes Over Alex Jones’s Liquidated Assets

Broadcaster Alex Jones said a company is now offering $8 million to buy Infowars.
Sandy Hook Families Settle Disputes Over Alex Jones’s Liquidated Assets
InfoWars founder Alex Jones at a hearing to examine foreign influence operations' use of social media platforms before the Intelligence Committee at the Capitol, on Sept. 5, 2018. Samira Bouaou/The Epoch Times
Bill Pan
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Families of Sandy Hook victims who sued Alex Jones for calling the 2012 Connecticut school shooting a hoax resolved their disputes on Monday over how to divide the broadcaster’s assets, which are being liquidated in a federal bankruptcy court.

Jones declared bankruptcy in 2022 after courts in Connecticut and Texas ruled in favor of the families in their defamation claims. Most of the proceeds from the sale of his Infowars media company, along with his personal assets being sold, will be used to pay the families.

The families had disagreed over how to pursue Jones’s assets. A group of families that sued Jones in Texas preferred more cash payments, while a larger group of families that sued in Connecticut prioritized shutting down Infowars.

Under Monday’s settlement, the Texas families will receive $4 million, with $1 million paid within seven days of court approval. The Texas families will also receive 25 percent of any future payments, while the remaining 75 percent will go to the Connecticut families.

“The settlement with the Texas families is a milestone event and puts the families back on the same side,” Kyle Kimpler, an attorney for the Connecticut families, said.

Avi Moshenberg, representing the Texas families, similarly said the two groups are now “100 percent aligned.”

Last month, U.S. Bankruptcy Judge Christopher Lopez rejected the initial sale of Infowars to parody news site The Onion for $1.75 million, citing flaws in the process that the Chapter 7 trustee orchestrated to sell the company to the highest bidder.

The trustee, Christopher Murray, opted for sealed bids rather than an open auction where everyone can see the bids that are made in real time. Lopez said he would have preferred to see a back-and-forth auction that could have driven up the sale price and yielded 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 said. “It’s clear the trustee left the potential for a lot of money on the table.”

On Monday, the judge heard an update to the Infowars sale, with the same two contenders remaining: The Onion and First United American Companies, which runs Jones’s online supplement store.

The Onion had submitted a $1.75 million cash offer with plans to repurpose Infowars to advocate for progressive causes such as gun control. The bid also included a deal with the Connecticut families for them to forgo $750,000 of the proceeds from the sale in favor of other creditors.

First United initially offered $3.5 million in cash. According to Jones, the company is now offering $8 million, more than double its original bid.

“In the next few weeks, they’re going to have some other dates set when the U.S. trustee is ready to tell the court whether or not they have anyone bidding against the company I’ve been working with ... that has now doubled their bid to $8 million,” Jones said on Monday in his broadcast on X.
Jones and First United American had filed separate lawsuits seeking to disqualify The Onion’s bid, citing alleged fraud and collusion. Lopez said there was no wrongdoing in the bidding process.

The case is now due back in court on Jan. 23, when the judge will consider approving the deal among Sandy Hook families.

A lawyer for Jones said he would discuss the families’ agreement with Jones.

Reuters contributed to this report.