3 years in, Sandy Hook families still wait to collect what Alex Jones owes them

After a frustrating and futile three years in federal bankruptcy court, the Sandy Hook families who sued Infowars conspiracist Alex Jones for defamation thought they were finally getting closer to collecting the $1.3 billion that he owes them. But as a hearing in federal bankruptcy court in Texas got underway on Thursday, things seemed to be going the other way, with all parties showing signs of exasperation at different moments, including the judge.

“This case has been pending since 2022, folks, it just needs to end,” said U.S. Bankruptcy Court Judge Christopher Lopez. The more the case drags on, Lopez added, the more money from Jones’ estate is going to pay lawyers, leaving less for the families.

At the same time he was trying to advance the case, however, the judge was fueling concerns, as he appeared to be changing his mind on how Infowars’ parent company, Free Speech Systems, should be sold. Jones’ lawyers are arguing for another bankruptcy auction, and even though the judge previously made clear that he would not permit that, he said Thursday that he wants to “think about everything.”

From the families’ perspective, it looked like yet another discouraging turn in their exhausting legal ordeal.

“Jones is obviously throwing every roadblock in the way [to avoid] accountability” said Avi Moshenberg, an attorney for the Sandy Hook families who filed their lawsuit in Texas. “These families have been through enough. They want closure. They have done nothing to deserve the added pain that comes through more delay, and they will not be deterred from getting justice.”

Jones declared bankruptcy after the Sandy Hook families won $1.3 billion in two defamation suits in Connecticut and Texas accusing Jones of spreading bogus conspiracy theories that they were all actors in an elaborate hoax, just pretending their children were killed in a mass school shooting. Jones’ followers who believed those lies harassed and tormented the families for years. Jones would later admit that the 2012 shooting was real, and actually did kill 20 young children and six educators.

For the past three years, the bankruptcy proceedings have been marked by sharp turns and setbacks for the families. The judge has stopped lawyers from going to a Texas state court to try to force a sale of Jones’ media company to collect what they’re owed. Lopez insisted that had to be done through the bankruptcy court. But when the company was later auctioned through a bankruptcy court process, and the satirical site The Onion was named the winning bidder, the judge shut that down too, saying the process was flawed. Then, just months later, in a striking reversal, the judge said the company actually could not be sold through the bankruptcy court after all, and told the families to go back to pursuing that claim in state court.

Today, an attorney for the bankruptcy trustee sat in court shaking his head side to side. One of the attorneys for the families looked like he was ready to jump out of his chair.

“We have heard you [saying] that some collection activities should be proceeding in state court,” said Kyle Kimpler, one of the attorneys for the families who sued in Connecticut. “We are trying to do that.”

State court does appear to be the families’ best hope for any windfall from Infowars’ parent company, but Jones continues to fight that prospect.

His attorney, Shelby Jordan accused the Sandy Hook families of “abusing” the bankruptcy process “to destroy Alex Jones. … It’s always been ‘destroy the brand, and take him off the air’ … so he can never be part of the public discourse again.”

By the end of the hour and half hearing, Judge Lopez, signaled he was less inclined to allow another bankruptcy auction of the company.

“I don’t think I’ve changed my mind here,” Lopez said from the bench, before adding, “If anything changes, I’ll let you know.”