Alex Jones, founder of Infowars, has presented a bankruptcy exit plan that outlines a proposed settlement with the families of Sandy Hook Elementary School shooting victims. Jones filed for bankruptcy protection a year ago following defamation judgments totaling approximately $1.4 billion related to his false claims that the 2012 Sandy Hook Elementary School shooting was a hoax.
Jones’ Bankruptcy Exit Plan
Jones’s proposal suggests a settlement of at least $55 million to be disbursed for ten years. This figure falls significantly short of the families’ initial proposal, creating a notable discrepancy of at least $30 million. The plan, filed with the US Bankruptcy Court for the Southern District of Texas, awaits court approval.
Settlement Terms
Under Jones’s Chapter 11 plan, those who opt for settlement would share a minimum annual sum of $5.5 million over the specified decade. Additionally, family members choosing to settle may access all disposable income from Jones’ bankrupt parent company, Free Speech System LLC, along with 50% of Jones’s revenue for the first five years, followed by 25% for the subsequent five years.
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Implications for Victims’ Families
While the proposed settlement offers expedited payments, it stipulates that families cannot pursue further legal action against Jones beyond the agreed-upon terms. The plan emphasizes that unsecured creditors, including the victim’s families, will receive a substantial distribution, exceeding what they would receive in a Chapter 7 liquidation.
Response from Sandy Hook Families
Avi Moshenberg, a bankruptcy attorney representing a group of Sandy Hook families, stated, “Today is the first time Jones has publicly shared his bankruptcy plan for being accountable for the harm he’s caused the Sandy Hook Families. We’re carefully examining his plan and will share our views in due time.”
Competing Proposals
Jones’s plan contrasts with alternatives presented by victim families last month, who suggested winding down the bankruptcy by either paying creditors a minimum of $85 million over a decade or liquidating Jones’s assets. Jones’s legal representation has dismissed the families’ proposal as unrealistic.
Judicial Oversight
The Chapter 11 exit proposal follows Judge Christopher M. Lopez’s October ruling that Jones remains accountable for approximately $1.1 billion of the total debt. The court has not decided whether the remaining $300 million can be discharged in bankruptcy.
Permission to Sell Assets
Earlier this month, the court permitted Jones to sell personal items, including guns and jewelry, on Infowars shows. The proceeds will contribute to an escrow fund for legal fees related to the bankruptcy, with any surplus allocated to creditor payments as part of the Chapter 11 plan.
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