A federal judge rejected The Onion’s winning bid for Alex Jones’ Infowars, citing flaws in the auction process and concerns about compensation for Sandy Hook families.
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The satirical news outlet, The Onion, had seemingly won the auction for Infowars, the conspiracy theory platform owned by Alex Jones, with a bid of $1.75 million in cash and other incentives. The auction was part of Jones’ bankruptcy proceedings following defamation lawsuits related to the Sandy Hook Elementary School shooting. However, U.S. Bankruptcy Judge Christopher Lopez declined to approve the sale, criticizing the auction process and expressing concern that the winning bid left significant potential compensation for the Sandy Hook families unrealized.
Auction Process Deemed Flawed, Leaving Money on the Table
Judge Lopez highlighted issues with the auction process, though he did not allege any wrongdoing. He stated that he was unwilling to authorize another auction and entrusted the trustee overseeing the process to determine the next steps. A key concern for the judge was the disparity between the winning bid and the substantial financial damages Jones has been ordered to pay to the Sandy Hook families. He emphasized the need to maximize recovery for the families, stating the auction “left a lot of money on the table.”
Alex Jones speaks to the media after a bankruptcy hearing. (AP Photo/David J. Phillip, file)
A competing bid from First United American Companies, a company linked to Jones that sells nutritional supplements, offered $3.5 million. While The Onion’s cash offer was lower, it included a provision where Sandy Hook families would forgo $750,000 of their proceeds, effectively increasing the payout to other creditors. Despite this, the judge deemed the overall outcome insufficient for the families.
Disappointment for Sandy Hook Families, Victory for Jones
The decision drew disappointment from lawyers representing the Sandy Hook families, who remain committed to holding Jones accountable. Conversely, Jones celebrated the ruling, calling the auction “fraudulent” and praising the judge for his decision.
A copy of The Onion. (AP Photo/Jill Bleed, File)
The rejected sale leaves the future of Infowars uncertain. The Onion had intended to oust Jones and relaunch the platform as a parody. Now, Jones will retain control of his Austin, Texas headquarters and continue broadcasting. This case underscores the complex intersection of bankruptcy proceedings, defamation lawsuits, and the ongoing struggle to compensate victims of harmful misinformation.
The Bankruptcy Case and Future Implications
Jones’ bankruptcy filing followed nearly $1.5 billion in court-ordered damages in defamation lawsuits brought by families of Sandy Hook victims. He had repeatedly spread false claims that the shooting was a hoax.
The auction of Infowars assets, including studio equipment, social media accounts, and trademarks, aimed to partially satisfy these judgments. While the judge’s decision provides a temporary reprieve for Jones, the underlying legal battles and financial obligations remain. The Sandy Hook families continue to pursue justice, and the ultimate fate of Infowars remains to be seen.
