Sandy Hook families who won $1.35 billion in defamation judgments from Alex Jones in Texas and Connecticut cases have agreed on how to divide $16 million of his personal and professional assets that are being liquidated in federal bankruptcy court.
Under the settlement, which must be approved by the judge, a group of families that sued Jones in Texas will receive $4 million and a larger group of families that sued Jones in Connecticut will receive $12 million, according to a federal official who is in charge of liquidating Jones’ assets to pay the families a token of what he owes them.
“I am pleased to report we spent most of the holidays working through these issues, and we have a compromise between the trustee and the Texas and Connecticut families, primarily concerning the allocation of the estate funds,” said Joshua Wolfshohl, an attorney representing Trustee Christopher Murray, in federal bankruptcy court in Texas on Monday. “We heard your honor say to get this case back on track. We were able to get this across the finish line.”
The settlement means that the 2½-year bankruptcy saga involving the Sandy Hook families and Jones’ Infowars merchandizing broadcast business is coming to a close.
“At the last hearing … your honor made it clear you want this case to wrap up; I believe the words you used were, ‘This case ends in 2025,’” Wolfshohl told the judge during a teleconferenced hearing. “We heard your honor loud and clear. We have made progress to settle disputes that have plagued this case for two-and-a-half years.”
The settlement agreement comes one month after bankruptcy Judge Christopher Lopez threw out the sale of Infowars to a satirical news site known as the Onion and the group of Sandy Hook families from Connecticut based on “a question of the trustee’s business judgment.”
On Monday, the judge heard an update that Round 2 of the Infowars sale is apparently in the making, with the same two buyers in play – an ally of Jones called First United American Companies, and the parent company of the Onion, Global Tetrahedron.
“We received an unsolicited new bid from First United that more than doubled the previous offer, and we also expect to get a bid from Global Tetrahedron. We anticipate coming back to you … to talk about the sale procedure,” Wolfshohl said. “We don’t know what that will look like, but it could possibly be an auction in court.”
The Infowars sales update and the settlement news between Sandy Hook families comes one week after the trustee said he had reached a settlement with a company run by Alex Jones’ father that claimed it was owed $68 million from Infowars. The settlement, if the judge agrees, would pay Jones’ father $375,000.
The settlement between the Sandy Hook families, which the judge could approve at a Jan. 23 hearing, is the latest indication of how much Jones’ bankrupted estate is worth after Jones called the 2012 massacre of 20 first-graders and six educators at Sandy Hook Elementary School “staged,” “synthetic,” “manufactured,” “a giant hoax” and “completely fake with actors.”
Lawyers for the Texas families and the Connecticut families praised the settlement in court on Monday.
“The Texas and Connecticut families are 100 percent aligned; this is an agreement we are proud of,” said Avi Moshenberg, an attorney for Texas families. “We haven’t always agreed, but this really reflects what all families view as what justice is in this case with Alex Jones.”
“I will echo what Mr. Moshenberg said about the settlement with the Texas families,” said Kyle Kimpler, an attorney for the Connecticut families. “It is a milestone in this case and puts the families back on the same side.”
The short and amicable hearing on Monday was in contrast to a lengthy and contentious two-day hearing in early December, after which the judge expressed frustration at the slow pace of the case.
“Your honor said after that hearing, ‘I am going to ask you in 30 days where the case stands,’ and 30 days have passed,” Wolfshohl said. “We’ve accomplished a lot in 30 days.”
“I have been watching and monitoring the docket,” the judge responded. “I can certainly tell a lot of work has been done.”