Federal judge hears why Alex Jones didn’t file for bankruptcy himself
Alex Jones filed bankruptcy for “Infowars,” but not for himself, as trials neared to award damages in defamation cases he lost to Sandy Hook families because Jones feared he would lose credibility with listeners and product sales would suffer, his representative told a federal judge on Friday.
“InfoWars is a prominent trademark in the conspiracy theory community and Alex Jones is equally as prominent,” said Jones’ representative Marc Schwartz in federal bankruptcy court in Texas on Friday. “It would ruin his name and harm his ability to sell merchandise.”
Randy Williams, an attorney representing eight Sandy Hook families in Connecticut who are awaiting trial in August to see how much in defamation damages Jones will pay them, asked Schwartz in bankruptcy court Friday, “How (would) that harm him?”
“Putting him in bankruptcy would harm his trademark value in term sof cashflow,” said Schwartz who was answering questions as the proposed chief restructuring officer for three Jones-controlled business entities that filed for Chapter 11 protection earlier this week.
Schwartz, who said Jones’ name was the “CocaCola of the conspiracy theory community” said Jones counts on his name brand to sell merchandise to his audience base — a business that brought in at least $76 million in the 2019 fiscal year.
“If you look at the impact of litigation in 2021, his estimated revenue based on merchant receipts is $56 million, or $20 million less,” Schwartz said.
Schwartz was referring to three defamation lawsuits Jones lost to Sandy Hook families last year after he called the 2012 shooting of 26 first-graders and educators at Sandy Hook Elementary School “staged,” “synthetic,” “manufactured,” “a giant hoax,” and “completely fake with actors.”
To date, Jones has spent $10 million in legal fees, according to bankruptcy documents.
Schwartz was called by federal bankruptcy Judge Christopher Lopez to answer informal questions after the judge decided Friday that he would not rule on two requests by Jones to begin the Chapter 11 process. Both requests were disputed by attorneys for the Sandy Hook families in Texas and Connecticut.
An attorney representing the four parents of two slain Sandy Hook boys in the Texas cases called for the judge to dismiss the bankruptcy case.
“Let me tell you I think we have a sinister and unworthy purpose here,” said Maxwell Beatty. “Even if I am wrong, we don’t have an actual intent to reorganize here.”
The first of two jury trials to award defamation damages to Sandy Hook parents in Texas was scheduled to begin Monday.
The federal bankruptcy process has superseded the cases in trial court in Texas and Connecticut, at least for now.
The bankruptcy judge ordered a status conference for April 29.