Judge Blocks Infowars Sale to The Onion

A Houston federal judge rejected the sale of Alex Jones’ Infowars to The Onion on Tuesday evening, citing flaws in the bidding process and concerns about the compensation for Sandy Hook Elementary shooting victims’ families.

The Onion, declared the winning bidder on November 14th, outbid a Jones-affiliated company. The sale was part of Jones’ bankruptcy proceedings, resulting from court orders totaling nearly $1.5 billion for falsely claiming the Sandy Hook massacre was a hoax.

Judge Christopher Lopez’s rejection allows Jones to retain control of his Austin, Texas headquarters. The Onion had intended to remove Jones and relaunch Infowars as a parody in January.

“We are disappointed by today’s ruling, but The Onion remains committed to securing a favorable outcome for the Sandy Hook families,” stated Ben Collins, CEO of The Onion’s parent company, Global Tetrahedron, on social media.

Lopez identified procedural issues but found no evidence of misconduct. He declined to order a new auction, leaving further steps to the auction’s overseeing trustee.

The Onion offered $1.75 million in cash and incentives, while First United American Companies bid $3.5 million.

These bids were significantly lower than the defamation judgment amounts. Lopez noted the auction left substantial funds unclaimed for the families, stating, “You got to scratch and claw and get everything you can for them.”

Christopher Mattei, representing the Sandy Hook families in their Connecticut lawsuit, expressed disappointment. He stated their commitment to holding Jones accountable for his actions remains unwavering.

Jones, absent from the proceedings, celebrated the ruling on air, labeling the auction “fraudulent.”

Despite The Onion’s lower cash offer, their bid included a pledge from Sandy Hook families to forgo $750,000, benefiting other creditors more than First United American’s bid would have.

Alex Jones’ bankruptcy case

The Infowars sale is part of Jones’ bankruptcy filing from late 2022, following the $1.5 billion defamation judgments in Connecticut and Texas.

Jones repeatedly and falsely labeled the shooting, which killed 20 children and six adults, a hoax, causing immense trauma to victims’ families and provoking threats from his followers. He has since acknowledged the shooting occurred.

The majority of proceeds from the sale, along with Jones’ personal assets, are allocated to the Sandy Hook families, with a portion going to other creditors.

The auction overseer defends his decision

Trustee Christopher Murray defended The Onion’s bid during a two-day hearing, denying bias towards either bidder. He indicated that he couldn’t accept a revised bid from First United American due to objections from the Connecticut Sandy Hook families.

The Onion valued its bid, including the families’ contribution, at $7 million, arguing this provided equal compensation to other creditors compared to First United American’s bid.

Murray’s lawyers previously called First United American’s attempt to disqualify The Onion’s bid an “improper attempt to influence” the process.

Jones’ attorney, Ben Broocks, raised concerns that the judgments against Jones could be overturned on appeal, impacting the Sandy Hook families’ contribution. Auctioneer Jeff Tanenbaum also defended the bid and its selection.

Putting Infowars up for auction

The auction included Infowars studio equipment, social media accounts, websites, video archives, trademarks, and many of Jones’ personal assets. Jones established alternative platforms anticipating a potential sale and removal.

Jones is appealing the judgments, citing free speech rights.

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