Judge Blocks Onion from Purchasing Infowars

By Dietrich Knauth

NEW YORK (Reuters) – A U.S. bankruptcy judge on Tuesday halted the parody news site The Onion from acquiring conspiracy theorist Alex Jones' Infowars website, determining that a bankruptcy auction did not yield the most favorable bids.

U.S. Bankruptcy Judge Christopher Lopez rejected Jones' claims of collusion in the auction after a two-day hearing in Houston.

Lopez indicated that the court-appointed bankruptcy trustee made a good-faith error by hastily requesting final offers for Infowars instead of allowing further bidding between The Onion and First American United Companies, affiliated with Jones' supplement business, which was the runner-up.

"This should have been opened back up, and it should have been opened back up for everybody," Lopez stated. "It's clear the trustee left the potential for a lot of money on the table."

He noted that neither offer for Infowars was adequate considering Jones' substantial debts and instructed the trustee to address some creditor disputes before trying to sell Infowars again.

The Onion won the November auction for Infowars, but Jones and First American argued that the sale process was flawed because The Onion received undue advantage due to the support of families who had won large court judgments against Jones.

Jones declared bankruptcy in 2022 and was compelled to liquidate assets to settle over $1.3 billion in legal judgments owed to families of 20 students and six staff members killed in the Sandy Hook Elementary School shooting in 2012.

Courts in Connecticut and Texas have determined that Jones defamed these families by making false claims that the shooting was staged as part of a government conspiracy to confiscate firearms.

Jones' attorney, Ben Broocks, told Lopez that The Onion's cash offer was only half of the $3.5 million made by First American but claimed it was inflated by "smoke and mirrors" calculations.

The Sandy Hook families, as Jones' largest creditors, supported The Onion's bid by agreeing to forgo some repayment from the Infowars sale to ensure other creditors received more money. This led the bankruptcy trustee to evaluate The Onion's bid at $7 million total.

Chris Mattei, an attorney for the Sandy Hook families, expressed disappointment but reiterated their resolve to hold Jones accountable for the related harm.

"The 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 stated.

Jones celebrated the ruling on Infowars. The Onion's CEO Ben Collins expressed deep disappointment over Lopez's decision but indicated ongoing interest in acquiring Infowars to create a "better, funnier internet".

The Onion aimed to re-launch Infowars in 2025 as a parody site featuring "noticeably less hateful disinformation" than previously.

Christopher Murray, the court-appointed trustee responsible for selling Jones' assets, testified that the auction process was fair, noting that First American only raised complaints after its bid was not selected.