Infowars Drama: Alex Jones Contests Auction Outcome Against Satirical Bidder

Alex Jones, the controversial media personality, is suing The Onion to prevent it from acquiring his Infowars empire after a bankruptcy auction.

At a Glance

Alex Jones is contesting The Onion’s winning bid in the Infowars bankruptcy auction
The auction proceeds are intended for Sandy Hook families who won a $1.5 billion defamation suit against Jones
Jones claims The Onion’s bid is based on “fake dollars” and alleges a rigged process
U.S. bankruptcy trustee Christopher R. Murray supports the auction as fair and open
Jones urges supporters to buy from a new online store as he fights what he calls the “deep state”

The Onion’s Controversial Win

In an unexpected turn of events, satirical news outlet The Onion has emerged as the winning bidder in the bankruptcy auction for Alex Jones’s Infowars empire. This development has sparked a legal battle, with Jones filing a lawsuit to prevent The Onion from acquiring his company, Free Speech Systems, and its controversial media platform, Infowars.

The auction was held to generate funds for the Sandy Hook families who previously won a $1.5 billion defamation suit against Jones. The lawsuit stemmed from Jones’s false claims about the 2012 Newtown shooting, which he had repeatedly characterized as a hoax on his platform.

The Onion wins Alex Jones' Infowars in bankruptcy auction https://t.co/4nHZZ0lzWH

— CNBC (@CNBC) November 14, 2024

Jones’s Legal Challenge

Jones’s lawsuit describes The Onion’s bid as a “flagrantly non-compliant Frankenstein bid” and accuses the satirical news organization of collusive bidding. He is urging the judge to disqualify The Onion’s offer and instead accept the bid from First United American Companies (FUAC), an entity affiliated with Jones himself.

“Jones is in this mess because he didn’t cooperate with the proceedings in Connecticut and Texas and he is, in essence, a scofflaw,” said Bruce Markell, a former federal bankruptcy judge.

The competing bids present a stark contrast. FUAC offered $3.5 million in cash, while The Onion’s bid consists of $1.75 million in cash coupled with an agreement with the Connecticut families to forgo some of the sale proceeds. Jones argues that The Onion’s offer is based on “fake dollars” and claims that the auction rules were altered to favor The Onion.

Trustee Defends Auction Process

U.S. bankruptcy trustee Christopher R. Murray has dismissed Jones’s allegations, maintaining that the auction process was fair and open. Murray believes that a single round of “final and best” offers would maximize value for creditors. Former federal bankruptcy Judge Bruce Markell suggests that the court will likely defer to the trustee’s judgment in this matter.

“That’s what trustees are being paid for,” Markell stated, highlighting the trustee’s role in such proceedings.

Adding another layer of complexity to the situation, Jones is contesting his removal from his Austin studio, arguing that the sale is not yet final. The trustee’s attorney has expressed concern about asset protection, given Jones’s history with the court system.

Jones’s Appeal to Supporters

As the legal battle unfolds, Jones claims he is losing money as his supporters believe the sale is finalized and are hesitant to purchase his products. In response, he has urged his followers to buy from a new online store and support him in his fight against what he calls the “deep state.”

Jones referred to those claiming ownership of his studio as “the scumbags that claimed they own this place,” demonstrating his ongoing defiance in the face of legal challenges.

As this unusual case progresses, it continues to highlight the complex intersection of bankruptcy law, free speech, and the consequences of spreading misinformation. The outcome of this legal battle could have significant implications for Jones, The Onion, and the Sandy Hook families seeking justice.