A Texas judge has ruled that the families of Sandy Hook Elementary School shooting victims can pursue assets owned by Infowars. This decision came during a hearing led by Judge Christopher Lopez in the US Bankruptcy Court for the Southern District of Texas. The ruling clarifies the status of Infowars assets amid ongoing bankruptcy proceedings involving its parent company, Free Speech Systems LLC.
Key Findings from the Ruling
The judge addressed arguments presented by Alex Jones’ legal team, which claimed that the legal status of the assets was ambiguous. Judge Lopez explicitly stated that the litigation pause linked to Jones’ Chapter 7 bankruptcy does not extend to Free Speech Systems. The bankruptcy of this parent company was dismissed last year, making its assets available for creditor claims.
Challenges Faced by Alex Jones
Jones, a prominent conspiracy theorist, faces over $1 billion in judgments due to false claims regarding the Sandy Hook shooting. His attorney, Ben Broocks, described the bankruptcy dismissal order as “deeply confusing.” However, Judge Lopez countered this assertion, suggesting that Broocks may lack proficiency in bankruptcy law.
Details on Free Speech Systems’ Assets
Lopez’s ruling provides much-needed clarity to the families seeking compensation. He noted that the assets of Free Speech Systems were not automatically transferred into Jones’ liquidating estate. Instead, they are seen as vested property within the estate. This distinction is crucial as it allows the families to continue their legal pursuits.
- The dismissal order for Free Speech Systems did not convert its assets into Jones’ estate property.
- Jones’ liquidating trustee, Christopher Murray, has not been involved with Free Speech Systems since September 25.
- Murray is contemplating abandoning the equity, which, if executed, would remove it from Jones’ estate.
Legal Concerns and Future Steps
The judge’s decision emphasizes the complexities of bankruptcy law. Lopez remarked that he cannot void orders that are already considered void based on their own terms. In previous attempts to sell Infowars assets to The Onion and another company linked to Jones, both bids were denied.
Looking ahead, Jones is also seeking a review from the US Supreme Court regarding a Connecticut court’s judgment of nearly $1.4 billion against him and Infowars. Multiple law firms are involved in representing different parties in this case.
The ongoing legal battles surrounding Infowars and its assets highlight the intricate relationship between bankruptcy proceedings and creditor rights, particularly in high-stakes cases involving significant judgments against the involved parties.
