HOUSTON — A U.S. bankruptcy judge has halted the purchase of the controversial Infowars website by the satirical news outlet The Onion. Judge Christopher Lopez of Houston ruled on Tuesday, following a two-day hearing, that the bankruptcy auction held in November, which had initially awarded the website to The Onion for $7 million, did not achieve the highest possible bids due to insufficient competitive bidding.
The November auction came under scrutiny after Alex Jones, the founder of Infowars known for his conspiracy theories, filed for bankruptcy in 2022. This legal move was a response to owing over $1.3 billion to the families of the victims of the 2012 Sandy Hook Elementary School shooting, following court rulings that found Jones had defamed the families by falsely claiming the massacre was a staged event.
Judge Lopez noted that the trustee overseeing the auction failed to foster enough back-and-forth bidding between The Onion and a competing bidder connected to Jones. He has mandated the trustee address disputes among creditors before attempting a new sale.
The deal’s contentious nature was further amplified by claims from a Jones-affiliated company that the auction process was prejudiced because The Onion’s bid reportedly received additional support due to endorsements from the Sandy Hook families. These families, as major creditors, had agreed to accept reduced proceeds from the sale so that other creditors could benefit more significantly.
Despite this setback, The Onion remains committed to acquiring Infowars. Following the judge’s decision, The Onion’s CEO expressed disappointment but reiterated the company’s interest in the purchase. In contrast, Jones publicly celebrated the voiding of the sale on his Infowars platform.
The ruling has significantly delayed the liquidation of Jones’ assets, initially meant to compensate the Sandy Hook families among other creditors. This case highlights the ongoing legal complications and the high-profile nature of Jones’ financial and legal troubles stemming from his conspiracy-laden commentary on American tragedies.
The conflict over the sale and its implications for the involved parties underscores the complexity of bankruptcy sales involving high-profile figures and companies with substantial public interest and legal entanglements.
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