Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Sandy Hook denier Alex Jones eyes late March bankruptcy exit

Published 01/24/2024, 07:34 PM
Updated 01/24/2024, 08:25 PM
© Reuters. FILE PHOTO: Infowars founder Alex Jones speaks to the media after appearing at his Sandy Hook defamation trial at Connecticut Superior Court in Waterbury, Connecticut, U.S., October 4, 2022. REUTERS/Mike Segar/File Photo

By Dietrich Knauth

NEW YORK (Reuters) - Sandy Hook conspiracy theorist Alex Jones could exit Chapter 11 bankruptcy by late March or early April, his lawyer said on Wednesday after a judge decided families whom he owes $1.5 billion for lying about the 2012 school shooting can vote on competing plans to resolve their claims.

U.S. Bankruptcy Judge Christopher Lopez in Houston allowed Jones to solicit votes on a proposal that would pay at least $55 million to the relatives of 20 students and six staff members killed in the 2012 mass shooting at Sandy Hook Elementary School in Newtown, Connecticut.

Jones, who hosts a radio show, claimed for years that the massacre was a hoax, staged with actors as part of a government plot to seize Americans’ guns.

He has since acknowledged the shooting occurred, but the families, who said Jones cashed in for years off his lies, sued him for defamation. Courts in Connecticut and Texas have ruled that Jones intentionally defamed them and have ordered Jones to pay $1.5 billion in damages.

Lopez on Wednesday also allowed the family members, whose defamation judgments make them the main creditors in Jones' bankruptcy, to solicit votes on their own plan, which would liquidate Jones' assets and pursue litigation against his associates.

The families previously estimated that they would receive at least $85 million from Jones under their plan.

Lopez said at a court hearing that both proposals contained enough information for creditors to make an informed vote. Lopez set a Feb. 12 deadline for votes.

Jones will attempt to reach a compromise with the Sandy Hook families before either plan is submitted for final court approval, his attorney Vickie Driver told Lopez at the hearing.

"Now that we've got some plans in place, that people can evaluate what it really looks like to go left or right. We have a chance at one more run at settlement," Driver said.

Jones previously engaged in bankruptcy mediation with the families, but failed to reach a settlement.

Jones expects to ask the court to approve his bankruptcy plan in late March or early April, after votes are collected and settlement talks have resumed, Driver said.

The Sandy Hook families' legal judgments account for nearly all of Jones' debts, according to court filings. Lopez previously ruled that at least $1.1 billion of their legal judgments cannot be legally discharged by Jones' bankruptcy.

© Reuters. FILE PHOTO: Infowars founder Alex Jones speaks to the media after appearing at his Sandy Hook defamation trial at Connecticut Superior Court in Waterbury, Connecticut, U.S., October 4, 2022. REUTERS/Mike Segar/File Photo

Bankruptcy can be used to wipe out debts and legal judgments but not if they result from "willful or malicious injury" caused by the debtor, Lopez said in an October ruling.

Jones and his media company, Free Speech Systems, filed for bankruptcy protection in December and July last year, respectively.

Latest comments

This ruling was an outright atrocity...an abomination of justice.  They clearly violated his 1a rights... and clearly did so for only one reason:  TO SILENCE HIM.  And as for this article... remember:  The CIA developed the term "Conspiracy Theorist" in order to gaslight, defame, and undermine people who were onto a real story they wanted to conceal.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.