Sandy Hook families ask judge to liquidate Alex Jones’ media company

Relatives of Sandy Hook Elementary school shooting victims are asking a bankruptcy judge to liquidate conspiracy theorist Alex Jones’ media companies, including Infowars, instead of allowing him to reorganize his business as he tries to collect $1.5 billion in the trial verdicts against him.

Attorneys for the families filed an emergency motion Sunday in U.S. Bankruptcy Court in Houston, saying Free Speech Systems has “no prospect” of getting a court-approved reorganization plan and “has demonstrated no hope of beginning to- and satisfy” legal claims. , which refers to Jones calling the 2012 school a sham.

A hearing in Free Speech Systems’ bankruptcy case was scheduled for Monday over a dispute over the company’s finances.

Jones went on the web and on his radio show over the weekend, saying there was a conspiracy against him and that he expected Infowars to be shut down in a month or two because of the families’ bankruptcy filings. The comments included profanity-laden rants, and Jones appeared to cry at times.

“There’s really no way out of this,” Jones said on his show Sunday. “I’m kind of bunkered down here. And don’t worry. I’ll be back. The enemy can’t help but make this attack.”

On Saturday, Jones was defiant, saying, “At the end of the day, we’re going to beat these people. I’m not trying to be dramatic here, but it was a tough fight. These people hate our children.”

A bankruptcy attorney for Free Speech Systems did not immediately return a message seeking comment Monday.

The liquidation could mean Jones, based in Austin, Texas, would have to sell most of what he owns, including the company and its assets, but could keep his home and other personal assets that are exempt from the bankruptcy liquidation . The proceeds would go to his creditors, including the Sandy Hook families. However, there is still no agreement or court ruling on how a settlement would work in Jones’ cases.

Jones and Free Speech Systems both filed for bankruptcy reorganization after the Sandy Hook families won lawsuits in Texas and Connecticut claiming defamation and emotional distress from Jones’ false claims. Jones said on his show that the school shooting that killed 20 first-graders and six educators was staged by crisis actors in an effort to push for more gun control laws.

Jones’ attorneys have been unable to reach an agreement in recent months with attorneys for the Sandy Hook families on how to resolve the bankruptcy cases. Jones’ attorney recently said in court that the cases appear headed for liquidation or could be dropped. The emergency motion filed Sunday was filed in the Free Speech System case.

If the cases are dropped, it would put Jones back in the same position he was in after the $1.5 billion in lawsuits was awarded and send efforts to collect damages back to state courts where the verdicts were pronounced.

The families of many of the Sandy Hook victims sued Jones and won the two lawsuits in Connecticut and Texas.

Relatives said they were traumatized by Jones’ comments and the actions of his followers. They testified at trials about the harassment and threats of Jones’ followers, some of whom personally confronted the grieving families, saying the shooting never happened and that their children never existed.

According to his most recent financial statements filed in bankruptcy court, Jones has about $9 million in personal assets, including his $2.6 million Austin-area home and other real estate. He also listed his living expenses at about $69,000 for April alone, including about $16,500 for his home expenses, including maintenance, housekeeping and insurance.

Infowars’ parent company, Free Speech Systems, which has 44 employees, had nearly $4 million in cash at the end of April. The business made nearly $3.2 million in April, including sales of supplements, clothing and other items Jones promotes on his show, while posting $1.9 million in expenses.

Jones and the Sandy Hook families have offered different proposals to pay the $1.5 billion they owe. Last year, Free Speech Systems filed a plan that would leave between $7 million and $10 million a year to pay creditors.

The families later countered with their own proposal: Either liquidate the Jones estate and give the proceeds to creditors, or pay them at least $8.5 million a year for 10 years — plus 50 percent of any income over 9 million dollars a year.