Despite a court ruling, Alex Jones' Infowars persists, yet remains at risk of termination
A judge in Houston granted Alex Jones permission to sell his personal belongings to help pay off the approximately $1.5 billion he owes to the families of the Sandy Hook tragedy victims. However, the judge declined to liquidate the parent company of Infowars, Free Speech Systems.
The decision wasn't a reflection of Jones or the judge's feelings towards Infowars. Instead, it was about practicality – figuring out the best way for the families to receive the most value from Jones and Infowars.
Judge Christopher Lopez expressed that this case was challenging, stating, "This wasn't about shutting down a show or not – that wasn't on the table today."
Lopez's Ruling
Lopez consented to Jones liquidating his personal assets to pay his debts, but he rejected the proposal to convert Free Speech Systems' bankruptcy into liquidation.
Some Sandy Hook families had urged the judge to liquidate Jones' Free Speech Systems company. They believed this would not only dismantle a platform that caused so much pain but also ensure a fair distribution of the proceeds from the sale.
However, a few families argued against liquidation, reasoning that liquidation is a prolonged and costly process, and the families have yet to receive any payment from the $1.5 billion Jones owes them. Judge Lopez noted that this case might be one of the longest-running cases of its kind in the country.
Because the company isn't in liquidation, the families can immediately pursue Free Speech Systems' assets in state court, a faster and cheaper alternative to liquidation.
"I must prioritize the creditors' interests," Lopez stated on Friday, adding, "Given the circumstances, creditors would benefit more by exercising their state court rights."
Since Jones is the owner of Free Speech Systems, and Jones himself is in bankruptcy, the families can go after Free Speech Systems' assets.
In a bizarre turn of events, the more money Jones makes from broadcasting his lies and conspiracies on Infowars, the more of the $1.5 billion he owes to the families could potentially be paid off.
Impact on Infowars
Jones' Infowars shows remain unaffected for now. The company can continue running, and Jones is free to express his views – including discussions about Sandy Hook – as he chooses.
Jones' personal stake in the company is subject to his own personal liquidation.
As a result of Jones' bankruptcy, Free Speech Systems now falls under the control of a court-appointed trustee. It remains unclear what the trustee will do – whether to keep Free Speech Systems running or sell it off.
"I no longer own Infowars," Jones said during a Saturday emergency show. "It's now managed by the court trustee. I am the CEO and the decision-maker."
A University of Texas bankruptcy law professor, Jay Westbrook, stated the personal bankruptcy trustee will take over Jones' stake in Free Speech Systems.
"The trustee will work to maximize the value of Jones' shares for the benefit of his creditors, including the possibility of selling Jones' shares," Westbrook noted.
Jones estimates the company might operate for five more months before a sale takes place.
"If we make it a few more months... if we make it that, we'll survive, under new management and ownership, but I'll still be the host here, I'll still control what I say or I won't be here," Jones said on Saturday. "We've got more time. It's like in a video game where you're down to one life, you get another life."
Moving Forward
The court-appointed trustee's powers over Free Speech Systems are still unclear. Lopez may schedule a new hearing to determine the trustee's powers.
Regardless of what happens to the company, Jones still owes nearly $1.5 billion. If Free Speech Systems continues to generate income for Jones, those funds will eventually need to be used to pay the families.
"Once Jones' bankruptcy case concludes, the families can start using state court collection tools – such as garnishment, attachment, and foreclosure – to recover funds from income that Jones earns and any property he acquires since filing for bankruptcy until their judgments are fully paid," Marie Reilly, bankruptcy law professor at Penn State University, told CNN.
Although Jones has recently acknowledged the Sandy Hook massacre, he can continue sharing dangerous rhetoric and conspiracy theories on his platforms. Lately, Jones has imagined executing Dr. Anthony Fauci and others who, according to Jones, "deceived Trump."
Even if Infowars is shut down, Jones can continue posting on his X account, which Elon Musk restored last year, or join other popular platforms.
Tucker Carlson, the former Fox News host, announced Jones would join him on his national live speaking tour earlier this month. However, Jones was subsequently dropped from the tour without explanation shortly after.
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Despite the ongoing financial struggles, Infowars continues to air media content on various platforms, thanks to the control Jones maintains as the company's CEO.
The liquidation of Jones' personal assets does not directly impact Infowars' business operations, as his stake in the company is not affected by this process.
