Judge rejects Sandy Hook families’ deal for a new auction of Alex Jones’ Infowars

• A judge rejected a deal for a second sale attempt of Alex Jones’ InfoWars. The ruling may also create division among the two groups of families who sued Jones.
• The judge denied the families’ settlement because they were asking Jones to divide assets from Infowars’ parent company, which had been dismissed from bankruptcy.
• Jones praised the judge’s decision, asking his followers for financial support to help him during his legal fight. 

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A federal bankruptcy court rejected a deal that would have set the stage for a second attempt to auction off Infowars, the media company owned by far-right radio show host Alex Jones. The decision Wednesday, Feb. 5, is another temporary pause for Jones, who is trying to maintain the audience he’s built up over the past two and a half decades. 

A federal judge first rejected the sale of Infowars to satirical news outlet The Onion. It came after Jones claimed the bankruptcy auction was filled with illegal collusion.

What led to a defamation lawsuit?

Wednesday’s ruling is also another delay for Sandy Hook families seeking to collect compensation for damages they won after suing Jones for defamation nearly seven years ago.

Jones made false claims that the mass shooting at a Connecticut elementary school was a hoax to push a gun control agenda. Those claims led to harassment and stalking of the victims’ families by followers of the media outlet.

Some families sued for defamation in Connecticut, and others sued in Texas, where Jones is based.

After Jones refused to cooperate at trial, judges in each state found him liable by default. 

The decision drove Jones and his company to file for bankruptcy.

What does the ruling mean for the families who sued Jones?

Wednesday’s decision now complicates the proposed sale of Jones’ platform. It may also create divisions between the two groups of families who sued him.

The Connecticut families won $1.3 billion, while the Texas families won $50 million.

They had proposed a settlement dividing future payments from Jones, with the Texas families receiving 25% and the Connecticut families 75%.

A judge rejected the settlement because the families asked him to divide assets from Infowars’ parent company, Free Speech Systems, which had been dismissed from bankruptcy last year.

The judge suggested the families and Jones’ bankruptcy trustee resolve the issue in state court or return with a new proposal.

The Connecticut families have said they are less interested in a financial win than in shutting down Infowars.

Jones praised the judge’s decision and asked his followers for financial support during his legal fight.