Last Thursday, the Chicago-based Onion acquired conspiracy theorist Alex Jones’ forced sale of Infowars for $7 million, including $1.75 million in cash and future revenue shares. First American United Companies, affiliated with Jones’ dietary supplements business, has requested that U.S. Bankruptcy Judge Christopher Lopez in Houston invalidate the parody news outlet’s winning bid and instead recognize its own $3.5 million offer.
First American’s bid offered more immediate cash, though it lacked the Sandy Hook families’ backing.
The sale of Infowars was part of a bankruptcy proceeding forced upon Jones after courts ordered him to pay $1.5 billion for defaming families of the 2012 Sandy Hook Elementary School massacre victims. Jones falsely claimed the tragedy was staged, a narrative that earned him significant public backlash and legal consequences.
Claims of Bid Rigging
According to Reuters, First American United Companies alleges the court-appointed bankruptcy trustee, Christopher Murray, mishandled the auction process. The company contends Murray gave undue weight to the Onion’s partnership with families of Sandy Hook victims, who agreed to accept future revenue shares instead of upfront cash payments.
The company stated in its objection, “This was not simply collaboration; this was outright collusive bid rigging. “
Murray defended the auction process, calling First American’s objection “an improper attempt to influence an otherwise fair and open auction process.” He emphasized the Onion’s bid as superior due to its alignment with the interests of the Sandy Hook families and its potential to prevent Infowars from continuing as a platform for conspiracy theories.
The Onion’s Vision for Infowars
The Onion, known for its satirical take on news, has pledged to overhaul Infowars, replacing what it described as “a relentless barrage of disinformation” with the Onion’s “noticeably less hateful disinformation.”
If approved, the sale would transfer Infowars’ intellectual property, including its website, customer lists, inventory, social media accounts, and production equipment, to the Onion.
The Sandy Hook families who supported the Onion’s bid cited their desire to prevent the platform from continuing to host harmful conspiracy theories. However, not all families agreed, with some still pursuing separate lawsuits against Jones in Texas.
Jones’ Legal and Financial Fallout
Jones’ defamation cases in Connecticut and Texas resulted in rulings that he intentionally harmed the Sandy Hook families. Judge Lopez has previously stated that these judgments cannot be discharged in bankruptcy, leaving Jones personally liable for the majority of the damages.
Judge Lopez has expressed concerns about the auction’s transparency and has scheduled a follow-up hearing to determine whether the sale to the Onion will proceed.
Infowars temporarily went offline following the announcement of the sale but resumed operations shortly after. Murray assured the court the temporary shutdown was necessary to protect the assets before their transfer.
The Onion’s acquisition marks a significant moment in Jones’ legal and financial battles, as his former platform now faces a complete transformation under new ownership. The outcome of the upcoming court hearing will determine whether the sale will stand.
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