Judge Rejects The Onion’s Purchase of Alex Jones’s Infowars in Bankruptcy Sale

Judge Christopher Lopez said a court-appointed trustee who oversaw the auction made ‘a good-faith error.’

InfoWars founder Alex Jones takes photos at a hearing to examine foreign influence operations' use of social media platforms before the Intelligence Committee at the Capitol on Sept. 5, 2018. Samira Bouaou/The Epoch Times

A federal judge in Texas on Dec. 10 rejected the auction sale of Alex Jones’s Infowars website to satirical publication The Onion, ruling that the process did not result in the best possible bids and citing concerns about transparency in the process.

The Onion was named the winning bidder of Infowars’s assets during the Nov. 14 auction, part of a personal bankruptcy case Jones filed in late 2022 after he was ordered to pay nearly $1.5 billion in several defamation lawsuits.

The lawsuits were filed against Jones in Connecticut and Texas by relatives of victims of the 2012 Sandy Hook Elementary School shooting, which Jones repeatedly claimed was staged as part of a government plot to increase gun control.

A total of 20 children and six educators were killed in the shooting. Jones has since acknowledged that the shooting took place and was “100 percent real.”

He said that he attempted to correct the claims that he initially made but that “[the media] won’t let me take it back.”

Following a two-day hearing in Houston, U.S. Bankruptcy Judge Christopher Lopez said he would not approve the sale. He rejected claims by Jones that the bankruptcy auction was plagued with collusion and fraud but noted problems, not wrongdoing, with the auction process.

The Onion’s bid of $1.75 million with additional incentives for Infowars’s assets was backed by the families of the massacre victims. The bid won despite a higher $3.5 million cash offer from First United American Companies, which runs a website in Jones’s name and sells nutritional supplements.

The Connecticut-based Sandy Hook families, who are Jones’s largest creditors, augmented the Onion’s bid by agreeing to forgo $750,000 of the proceeds from the sale in favor of other creditors, providing the creditors with more money than First United’s higher cash offer.

That concession caused the bankruptcy trustee to value The Onion’s bid at $7 million overall.

The judge said Christopher Murray, a court-appointed trustee who oversaw the auction made “a good-faith error” when he asked for final offers for Infowars instead of encouraging more back-and-forth bidding between The Onion and First United American Companies.

“This should have been opened back up, and it should have been opened back up for everybody,” Lopez said. “It’s clear the trustee left the potential for a lot of money on the table.”

Lopez also said the two offers for Infowars were just a fraction of the money that Jones has been ordered to pay in defamation lawsuits and noted the extent of his debts. He left it up to the trustee to resolve the disputes between the creditors before making a new attempt to sell Infowars.

After winning the auction in November, The Onion stated that it planned to relaunch Infowars in January as a parody website alongside advertiser Everytown for Gun Safety, the largest gun violence prevention organization in the country.

In a complaint filed in November, Jones urged the federal bankruptcy court in Texas to disqualify The Onion’s bid and instead recognize First United American Companies as the rightful winner of the auction.

Lopez’s ruling puts The Onion’s plan to take possession of the Infowars website and its associated assets on hold.

In a Dec. 11 social media statement, Ben Collins, CEO of The Onion’s parent company, Global Tetrahedron, said the publication is “deeply disappointed” but will “continue to seek a resolution that helps the Sandy Hook families receive a positive outcome for the horror they endured.”

Collins said the company will also continue to “seek a path” toward purchasing Infowars in the coming weeks.

“It is part of our larger mission to make a better, funnier internet, regardless of the outcome of this case,” Collins said.

Christopher Mattei, a lawyer for the Sandy Hook families who sued Jones in Connecticut, also expressed disappointment over the judge’s ruling.

Neil Heslin, father of Sandy Hook Elementary School shooting victim Jesse Lewis, holds a picture of him with Jesse during a hearing in Washington, in a file image. Alex Wong/Getty Images

“These families, who have already persevered through countless delays and roadblocks, remain resilient and determined as ever to hold Alex Jones and his corrupt businesses accountable for the harm he has caused,” Mattei said in a statement. “This decision doesn’t change the fact that, soon, Alex Jones will begin to pay his debt to these families and he will continue doing so for as long as it takes.”

The Epoch Times has contacted Jones for comment but did not hear back by publication time.

Reuters and The Associated Press contributed to this report.