Legal Setback for Infowars as Bankruptcy Judge Rejects Sale to The Onion
The high-profile legal battle surrounding Alex Jones and his media company, Infowars, reached another key moment on December 10, 2024, when a U.S. bankruptcy judge halted the sale of the platform to The Onion, a satirical news site. The sale, which had been proposed in a bankruptcy auction, was intended to address the significant financial liabilities Jones faces following multiple defamation suits. Despite The Onion winning the auction bid in November, Judge Christopher Lopez ruled that the process was flawed, leaving many questions about the future of Infowars unresolved.
The controversy began when Jones filed for bankruptcy in 2022 after being ordered to pay $1.5 billion in defamation damages to the families of victims from the 2012 Sandy Hook Elementary School shooting. His repeated claims that the shooting was a hoax led to lawsuits and the eventual bankruptcy filing. The auction of Infowars, which was intended to help cover some of Jones’ debts, featured two primary bidders: The Onion, which offered $1.75 million in cash and other incentives, and First United American Companies, linked to Jones, which bid $3.5 million. Despite the higher bid from Jones’ affiliates, the bankruptcy trustee overseeing the sale selected The Onion‘s offer.
Judge Lopez, however, ruled that the auction process was flawed, stating that the trustee had made a “good-faith error” by rushing the final offers and not encouraging more back-and-forth bidding. He also expressed concern that the process had not maximized the potential value of Infowars for Jones’ creditors, including the families of the Sandy Hook victims. As a result, he ordered the trustee to revisit the sale, resolve disputes between creditors, and attempt a new auction.
In defence of the auction process, Christopher Murray, the trustee overseeing the sale, testified that the offers were fairly evaluated. He also noted that only two entities had shown interest in Infowars, with The Onion’s bid being deemed far superior to that of Jones’ affiliated company. Jones, however, continued to argue that the auction was biased and claimed that The Onion’s bid was artificially inflated by the support of the Sandy Hook families.
Judge Lopez’s ruling highlights the complexity and contentious nature of Infowars’ sale. While the decision to halt the sale may prolong the uncertainty surrounding Jones’ financial future, it also reflects the ongoing tension between creditors, bidders, and legal authorities. This ruling does not only affect Jones and his bankruptcy case; it also raises broader questions about the dynamics of media company sales under financial distress, especially when legal and moral issues are at stake.
