Families of the Sandy Hook victims, who secured legal judgments totaling almost $1.5 billion against conspiracy theorist Alex Jones for dismissing the 2012 school shooting as a hoax, have proposed a settlement in his personal bankruptcy case in Houston. The families are willing to accept around $85 million over a 10-year period, offering this compromise to aid in resolving both Jones’ and his company Free Speech Systems’ bankruptcy reorganization cases. However, the families’ legal representatives assert that Jones has neglected his fiduciary duties, citing his extravagant lifestyle, failure to preserve asset value, reluctance to sell assets, and non-disclosure of certain financial documents.
In a pointed legal filing, the attorneys argue that Jones has not met the obligations mandated by the Bankruptcy Code during the nearly year-long breathing spell he has enjoyed. The families present two options for Jones: either liquidate his estate and allocate the proceeds to creditors or pay a minimum of $8.5 million annually for a decade, coupled with 50% of any income exceeding $9 million per year.
During a recent court hearing, Jones’ bankruptcy lawyer, Vickie Driver, expressed skepticism about the $85 million settlement offer, deeming it impractical for Jones to meet. In a new bankruptcy plan filed by Free Speech Systems on November 18, the company suggests paying creditors approximately $4 million annually, down from the earlier estimate of $7 million to $10 million. The plan outlines expected revenues of about $19.2 million in the coming year from the sale of products promoted on Jones’ shows, with operating expenses, including salaries, totaling around $14.3 million.
Jones’ personal financial statements submitted to the bankruptcy court show assets totaling approximately $13 million, including $856,000 in various bank accounts. While Jones had been receiving a $20,000 biweekly salary, equivalent to $520,000 annually, a court-appointed restructuring officer increased it to about $57,700 biweekly or $1.5 million yearly, asserting that Jones had been substantially underpaid considering his vital role in the media company. However, Bankruptcy Judge Christopher Lopez rejected this salary increase, stating that proper procedures under bankruptcy laws were not followed, necessitating a hearing.
If Jones rejects the families’ settlement offer, Judge Lopez will determine the amount he must pay to the families and other creditors. Following the tragic Sandy Hook Elementary School shooting in 2012, where 20 children and six educators lost their lives, Jones repeatedly claimed on his show that the incident was a staged hoax aimed at promoting stricter gun laws. While some Sandy Hook victims’ relatives filed lawsuits in Connecticut and Texas, winning judgments totaling nearly $1.5 billion, Jones is currently appealing these decisions, arguing that he did not receive fair trials and that his speech is protected by the First Amendment.
By: Montana Newsroom Staff
