OAN Staff Brooke Mallory
6:42 PM – Thursday, February 6, 2025
U.S. Bankruptcy Judge Christopher Lopez rejected a settlement between the Sandy Hook families in Alex Jones’ bankruptcy case during a brief hearing on Wednesday morning.
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A long-running disagreement between the plaintiffs from Texas and Connecticut over the division of bankruptcy funds was settled by the trustee in the first significant action since Lopez blocked the plan to sell Jones’ platform, Infowars, to the satirical publication The Onion.
However, citing the judge’s September ruling on the sale process as authority, the proposal also contained wording that would allow the Texas families, in particular, to renew their bankruptcy claims against Infowars‘ parent company, Free Speech Systems.
Jones and his business declared bankruptcy in 2022 after being hit with defamation judgments totaling more than $1.5 billion — for his statements regarding the Sandy Hook Elementary school shooting.
Judge Lopez dismissed the corporate bankruptcy case, but moved Jones’ personal bankruptcy case to Chapter 7 liquidation after two years of attempting and failing to come to an agreement with creditors and the Sandy Hook family in two states.
Shortly after Jones’ attorneys began their opening remarks in U.S. Bankruptcy Court for the Southern District of Texas, the judge interrupted in order to express his disapproval of the plan.
“He told the courtroom that he could not allow the trustee to use his September order, which outlined the procedures and terms of the November sale process, as justification to open up claims against Free Speech Systems,” Courthouse News Service reported.
Lopez also stated that the main objective of his September order had been fulfilled and that he would be removing it from use. The judge reminded everyone in the room that he had dismissed Free Speech Systems’ bankruptcy case back in June 2024 — which meant that no one could file a bankruptcy lawsuit against the corporation.
Lopez also informed trustee Christopher Murray at the end of his spoken ruling that he would no longer permit Infowars‘ assets to be sold. Now that the September injunction has been overturned, the trustee’s only power is to sell Infowars’ equity.
“What this debtor needs and what these families need is finality in bankruptcy, so they can pursue their remedies in state court, which is where they started,” Judge Lopez said.
During the hearing, Lopez did not rule on two proposed third-party settlements pertaining to Jones’ supplement company.
It is unclear what will happen to Infowars’ assets, whether they return to Jones or stay with the trustee. The judge has previously stated that he hopes to have the matter resolved by 2025.
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