Conspiracy theorist Alex Jones’ bankruptcy plan offers to pay the families affected by the Sandy Hook Elementary School shooting hoax conspiracy a minimum of $55 million over 10 years. This amount is significantly lower than the $1.5 billion awarded to the families in lawsuits against Jones for spreading false claims about the 2012 tragedy. In response, the families have submitted their own proposal, urging the liquidation of Jones’ assets, including his media company, Free Speech Systems, to compensate them and other creditors.
The dueling bankruptcy plans were filed in U.S. Bankruptcy Court in Houston and will undergo months of scrutiny before a final order is issued on the payout amount. Last year, both Jones and Free Speech Systems filed for bankruptcy as the families were awarded over $1.4 billion in a Connecticut lawsuit and an additional $50 million in a Texas lawsuit. Another trial is pending in Texas after the parents of another victim filed a similar lawsuit against Jones.
These new filings come just after marking the 11th anniversary of the tragedy, which claimed the lives of 20 first-graders and six educators in Newtown, Connecticut, on December 14, 2012. The families of the victims sued Jones in Connecticut for defamation and emotional distress, accusing him of perpetuating false narratives that the shooting was staged by crisis actors to fuel gun control initiatives.
During a month-long trial in late 2022, eight victims’ relatives and an FBI agent described enduring years of threats and harassment from individuals denying the incident’s occurrence. Some family members were subjected to unwelcome confrontations at their homes or in public, while others received death and rape threats through online platforms and emails.
Jones’ lawyers have not yet responded to the recent filing, while attorneys representing the Sandy Hook families declined to comment. Jones’ proposed settlement mirrors his media company’s previous offer made during its bankruptcy case, which would pay the families around $5.5 million annually for a decade, alongside a share of his income streams.
According to Free Speech Systems’ bankruptcy filing, the company estimated it would generate approximately $19.2 million in revenue next year from the sale of dietary supplements, clothing, and other merchandise promoted on Jones’ shows. However, after accounting for operational costs and salaries, the company planned to pay around $4 million annually to its creditors, a significant reduction from previous estimations.
On a personal note, Jones disclosed total assets of around $13 million in recent financial statements for the bankruptcy court. These assets include approximately $856,000 held in various bank accounts. Recently, a judge granted Jones permission to sell some of his assets, such as firearms, vehicles, and jewelry, to generate funds for his creditors.
Contrarily, the families’ proposed plan aims to establish a trust, which would liquidate the majority of Jones’ assets, excluding his primary residence and other properties protected under bankruptcy laws. The trust would possess broad authority, including the ability to recover funds from illegitimate transfers made by Jones.
The families have been critical of Jones’ significant personal spending, which reached $90,000 per month this year. They have also filed an additional lawsuit accusing Jones of attempting to hide millions of dollars to safeguard his wealth, a claim that one of Jones’ lawyers dismissed as ridiculous.
Jones is appealing the $1.5 billion in lawsuit awards issued to the families, maintaining that his comments regarding the shooting were protected by freedom of speech rights.
In the coming months, the filed bankruptcy plans will undergo extensive debate and challenges, and a final order will be determined in the scheduled February hearings, outlining the extent of Jones’ financial obligations. News of the developments surrounding this controversial conspiracy theorist and the ongoing legal battles he faces will be closely monitored by the general public, legal experts, and advocates for victim rights.
