Sandy Hook Families Offer to Settle Legal Judgments Against Alex Jones
Sandy Hook families who won nearly $1.5 billion in legal judgments against conspiracy theorist Alex Jones for calling the 2012 Connecticut school shooting a hoax have offered to settle that debt for only pennies on the dollar — at least $85 million over 10 years.
The offer was made in Jones' personal bankruptcy case in Houston last week. In a legal filing, lawyers for the families said they believed the proposal was a viable way to help resolve the bankruptcy reorganization cases of both Jones and his company, Free Speech Systems.
But in the sharply worded document, the attorneys continued to accuse the Infowars host of failing to curb his personal spending and "extravagant lifestyle," failing to preserve the value of his holdings, refusing to sell assets, and failing to produce certain financial documents.
"Jones has failed in every way to serve as the fiduciary mandated by the Bankruptcy Code in exchange for the breathing spell he has enjoyed for almost a year. His time is up," lawyers for the Sandy Hook families wrote.
The families' lawyers presented Jones with two options: either sell off his estate and distribute the proceeds to creditors, or pay them a minimum of $8.5 million per year for 10 years, along with 50% of any income over $9 million per year.
During a court hearing in Houston, Jones' personal bankruptcy lawyer, Vickie Driver, argued that the $85 million, 10-year settlement offer was too exorbitant and unrealistic for Jones to afford.
"There is no financial evidence to support the claim that Mr. Jones could ever make that amount in 10 years," she stated.
In a revised bankruptcy plan filed on November 18, Free Speech Systems stated that it could manage to pay creditors approximately $4 million per year, which is lower than the previous estimate of $7 million to $10 million annually. The company projected earnings of about $19.2 million for the next year from the sale of dietary supplements, clothing, and other merchandise promoted by Jones on his shows. The estimated operating expenses, including salaries, would amount to around $14.3 million.
In his most recent financial statements filed with the bankruptcy court, Jones disclosed total assets of approximately $13 million, including about $856,000 held in various bank accounts.
Under the orders of the bankruptcy case, Jones had been receiving a salary of $20,000 every two weeks, totaling $520,000 per year. However, this month, a court-appointed restructuring officer increased Jones' pay to about $57,700 biweekly, or $1.5 million per year, stating that he had been severely underpaid considering his importance to the media company.
Bankruptcy Judge Rejects Salary Increase for Alex Jones
A bankruptcy judge has rejected a $1.5 million salary increase for controversial media personality Alex Jones. The judge stated that the pay raise did not comply with bankruptcy laws and called for a hearing to be held. If Jones does not accept the families' offer, the judge will determine the amount he must pay to the families and other creditors.
Alex Jones has faced legal action from relatives of the victims of the Sandy Hook Elementary School shooting, in which 20 children and six educators were killed in 2012. Jones repeatedly claimed on his show that the shooting was staged and did not happen. The relatives sued Jones and were awarded nearly $1.5 billion in judgments against him.
In October, the judge ruled that Jones could not use bankruptcy protection to avoid paying over $1.1 billion of the debt. During the trials, the relatives testified about being harassed and threatened by Jones' followers, who accused them of being "crisis actors" and denied the existence of their children.
Jones is currently appealing the judgments, arguing that he did not receive fair trials and that his speech is protected by the First Amendment.
