Sandy Hook families will stop trying to recover a token of the $1.4 billion Alex Jones owes them by following a marathon course in federal bankruptcy court and instead will go after his Infowars conspiracy news broadcast business in state courts in Texas and Connecticut.
“In the over three years since (Infowars) and Jones first filed their bankruptcy cases, more than $10 million has been billed by estate professionals in these cases, either defending Jones or responding to objections from Jones … (a)nd yet, the Sandy Hook families have not yet received – and are no closer to receiving – a single dollar,” writes a team of seven attorneys representing the Sandy Hook families. “The Sandy Hook families have determined that the best path for collecting on their judgments against (Infowars) is to work together and pursue remedies in state court, which they will be doing in short order.”
The Sandy Hook families’ position, argued in a six-page filing in federal bankruptcy court in Houston on Tuesday, represents a major shift in the high-profile case and suggests a way forward for the families for the first time since Judge Christopher Lopez threw out the sale of Infowars to a partnership of the Onion and the families in December.
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“The Sandy Hook families have indulged enough resources leaving (Jones’) estate, all of which would otherwise be used to pay their claims, and do not support further estate resources being spent toward a bankruptcy sale,” the team of lawyers write. “Instead, the Sandy Hook families – consistent with the court’s directive – intend to pursue their remedies under state law, which they believe represents the most efficient and value-maximizing path forward.”
By ‘consistent with the court’s directive,’ the Sandy Hook families are referring to a Feb. 5 hearing when the judge said he was “not allowing” a second attempt to sell off Infowars, in part because the judge said, “I don’t trust the process. I would have to do it – me, myself – and I’m not overseeing it,” according to a transcript.
By pursuing ‘remedies under state law’ the families are referring to their new plan to file claims in state court for the money Jones owes them. The only thing that’s prevented families from filing claims in state court for the money is that Jones sought bankruptcy protection.
While Jones’ personal estate remains under bankruptcy protection, his Infowars business does not. It may seem as though Infowars is under bankruptcy protection because the federal trustee in change of liquidating Jones’ personal and professional assets has control of Infowars' equity.
“In pursuing state court remedies, the Sandy Hook families will coordinate, as appropriate, with the trustee, who is the 100% equity owner of (Infowars),” the families’ attorneys said. “The families no longer see any benefit to pursuing a costly and litigious sale process in this (bankruptcy) court."
Jones called the 2012 massacre of 26 first graders and educators at Sandy Hook Elementary School “staged,” “synthetic,” “manufactured,” “a giant hoax” and “completely fake with actors.”
A Jones-affiliated company that has offered $8 million to buy Infowars and a meme coin maker that has offered $3.5 million and a non-cash offer to buy Infowars have petitioned the judge recently to change his mind and allow another Infowars auction.
The judge is yet to rule on those petitions.
Rick Latona, CEO of meme coin maker WOW.AI, said on Wednesday, "We will wait and see how the judge formally responds."
"(E)ven if a sale of (Infowars) assets is not allowed, we want to continue exploring an equity purchase," Latona told Hearst Connecticut Media Group. "While we understand that the families are asserting that they want to pursue 'state court remedies,' we think our acquisition, whether it be via assets or equity, would get money into their hands sooner."