A judge granted Alex Jones a two-week extension to operate his media company, Free Speech Systems, amidst bankruptcy concerns.
Jones faced lawsuits and a $1.5 billion payment order to Sandy Hook shooting victims’ families for defamation and emotional distress related to his hoax claims about the shooting.
Despite Jones’ reorganization attempts, the families are pushing for liquidation, asserting that Jones has not made sufficient progress in addressing the lawsuit payments.
U.S. Bankruptcy Judge Christopher Lopez in Houston announced that he will address the motion on June 14 to decide whether to liquidate the assets of Jones and his company.
Jones alarmed his audience through “emergency broadcasts” on his web and radio show, warning of an imminent shutdown of Free Speech Systems, including his Infowars broadcasts, by the federal government and bankruptcy system.
Contrary to his claims, no shutdown occurred. In a dramatic moment, Jones even urged his supporters to create a protective human chain around his studio in Austin, Texas. Some of his statements were filled with profanity, and there were moments where Jones appeared emotional, even shedding tears.
“There’s really no avenue out of this,” Jones said on his show Sunday. “I’m kind of in the bunker here. And don’t worry. I’ll come back. The enemy can’t help but do this attack.”
Jones displayed a sense of defiance on Saturday, stating, “At the end of the day, we’re going to beat these people. I’m not trying to be dramatic here, but it’s been a hard fight. These people hate our children.”
The broadcasts were triggered by apparent conflicts involving Jones, a chief restructuring officer appointed by the bankruptcy court to supervise Jones’ company, and another company that provides the nutritional supplements sold on Jones’ shows, according to attorneys involved in the bankruptcy proceedings. Jones was reported to have made derogatory remarks about the restructuring officer during the weekend.
The company supplying the supplements, PQPR Holdings Limited, is primarily owned by Jones himself. A lawyer representing PQPR expressed opposition in court on Monday to the continued operation of Free Speech Systems and Infowars until June 14, citing Jones’ lack of cooperation in the bankruptcy negotiations and advocating for an immediate closure of Free Speech Systems.
Stephen Lemmon, the attorney for PQPR, informed the judge that there was no agreement in place to permit Free Speech Systems to operate.
“We think that everybody is better off if this just gets shut down right now,” Lemmon said.
Annie Catmull, representing Free Speech Systems, requested the judge to permit the company to continue its operations.
Judge Lopez decided that the company can sustain paying employee salaries and covering expenses until June 14. He urged the attorneys to “take the temperature down” in their arguments.
Sandy Hook families’ lawyer accused Jones of manufacturing a crisis over his companies’ imminent shutdown, involving unpaid bills disputes. Despite failed negotiations, Jones’ team hinted at assets liquidation or case withdrawal.
In liquidation, Jones may need to sell assets to settle debts, excluding protected items. Withdrawal would revert to pre-judgment status. Families won legal battles for emotional distress.
During the trials, they shared accounts of being confronted by individuals who denied the shooting and the existence of their children, leading to further trauma for the grieving families.
As per the latest financial disclosures submitted to the bankruptcy court, Jones himself holds approximately $9 million in assets, which include his $2.6 million home in the Austin area and other real estate holdings.
In his financial statements for April, Jones detailed his monthly living expenses at around $69,000, with about $16,500 allocated for home-related costs such as maintenance, housekeeping, and insurance.
Free Speech Systems, the parent company of Infowars with a staff of 44 employees, had close to $4 million in cash reserves by the end of April. The company generated revenue of nearly $3.2 million during the month.
