Judge blocks Onion’s acquisition of Infowars assets, saying ‘I don’t think there’s enough money’
A Texas bankruptcy judge rejected satirical website The Onion’s bid to acquire the assets of Infowars, the bankruptcy website of conspiracy theorist Alex Jones, saying the auction process lacked clarity and that the families of Sandy Hook shooting victims deserved more than The Onion’s. The parents made an offer.
Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas said late Tuesday that Onion’s winning bid – $1.75 million in cash – “left a significant amount of money behind” for the Connecticut family, The families won a $1.4 billion verdict in 2017. “You have to fight tooth and nail to get everything for them,” Lopez said.
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“I don’t think it’s enough money,” Lopez said Tuesday night when she ruled on the matter, NBC News reported.
It’s unclear whether a judge will order a new bankruptcy auction proceeding, in which Onion’s parent company Global Tetrahedron may be involved.
Chris Mattei, the Connecticut family’s attorney, said in a statement: “More than two years after Connecticut’s historic decision, we are convinced that the bankruptcy court’s rejection of the court-appointed trustee’s recommendations is in the best interests of the family. The Infowars takeover is disappointing. The families have overcome countless delays and obstacles and remain resilient and as determined as ever to hold Alex Jones and his corrupt enterprise accountable for the harm he caused. Change the fact that Alex Jones will soon begin paying off his debt to these families and will continue to do so for as long as necessary.
Last month, The Onion gleefully revealed its bid for Infowars, which was hired after the family of a victim of the Sandy Hook mass shooting in Connecticut won a judgment against Jones in a 2022 defamation lawsuit. Sued for bankruptcy (as did Jones). Jones repeatedly lied about the Sandy Hook massacre and advanced baseless conspiracy theories.
Lopez, however, ordered a new hearing to review the auction process over concerns he had previously expressed.
In the original Infowars auction, there was only one bidder, First American Corporation, which operates the ShopAlexJones.com website. First Associates and Jones complained that the trustee overseeing the auction failed to comply with Lopez’s instructions in the bankruptcy proceedings because the bids were submitted under seal.
Trustee Christopher Murray, who is overseeing the sale, acknowledged during a Nov. 14 status conference with the court that Onion’s cash bid was no higher than First United’s bid of $3.5 million. However, Murray said the Onion deal was selected as the better offer because the Connecticut family agreed to give up most of the money Jones owed them in order to pay off other creditors. Murray said in subsequent court documents that the Onion’s bid was worth $7 million, taking into account the support of the Sandy Hook family.
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