A federal judge on Tuesday night rejected the auction sale of Alex Jones’ Infowars to The Onion satirical news outlet, criticizing the bidding process as flawed and the amount of money that families of the 2012 Sandy Hook Elementary shooting stood to receive.

The Onion was named the winning bidder on Nov. 14 over a company affiliated with Jones. U.S. Bankruptcy Judge Christopher Lopez’s decision following a lengthy two-day hearing in a Texas courtroom means Jones can stay at Infowars in Austin, Texas. The Onion had planned to kick Jones out and relaunch Infowars in January as a parody.

The Onion offered $1.75 million in cash and other incentives for Infowars’ assets in the auction. First United American Companies, which runs a website in Jones’ name that sells nutritional supplements, bid $3.5 million.

The bids were a fraction of the nearly $1.5 billion that Jones has been ordered to pay in defamation lawsuits in Connecticut and Texas filed by relatives of victims of the Sandy Hook shooting, which Jones repeatedly called a hoax. Lopez said the auction outcome “left a lot of money on the table” for families.

“You got to scratch and claw and get everything you can for them,” Lopez said.

Lopez cited problems — but no wrongdoing — with the auction process. He said he did not want another auction and left it up to the trustee who oversaw the auction to determine the next steps.

Trustee Christopher Murray had defended The Onion’s bid during the hearing.

Christopher Mattei, a lawyer for the Sandy Hook families who sued Jones in Connecticut, said they were disappointed that the judge rejected The Onion’s bid after it was recommended by the trustee as being in the best interest of Jones’ creditors.

“These families, who have already persevered through countless delays and roadblocks, remain resilient and determined as ever to hold Alex Jones and his corrupt businesses accountable for the harm he has caused,” Mattei said in a statement late Tuesday. “This decision doesn’t change the fact that, soon, Alex Jones will begin to pay his debt to these families and he will continue doing so for as long as it takes.”

Jones, who did not attend the proceedings, quickly went back on the air to applaud the judge’s decision.

“We can celebrate the judge doing the right thing with the most ridiculous, fraudulent auction known in human history,” he said.

Although The Onion’s cash offer was lower than that of First United American, it also included a pledge by many of the Sandy Hook families to forgo $750,000 of the auction proceeds due to them and give it to other creditors, providing the other creditors more money than they would receive under First United American’s bid.

Alex Jones’ bankruptcy case

The sale of Infowars is part of Jones’ personal bankruptcy case, which he filed in late 2022 after he was ordered to pay nearly $1.5 billion in defamation lawsuits in Connecticut and Texas filed by relatives of victims of the Sandy Hook shooting.

Jones repeatedly called the shooting that killed 20 children and six educators a hoax staged by actors and aimed at increasing gun control. Parents and children of many of the victims testified in court that they were traumatized by Jones’ conspiracies and threats from his followers.

Jones has since acknowledged that the Connecticut school shooting happened.

Most of the proceeds from the sale of Infowars, as well as many of Jones’ personal assets, will go to the Sandy Hook families. Some proceeds will go to Jones’ other creditors.

The auction overseer defends his decision

Murray testified that he did not favor either bidder over the other and was not biased.

He also revealed that First United American submitted a revised bid in recent days, but he said he could not accept it because the Sandy Hook families in the Connecticut lawsuit objected.

The Onion valued its bid, with the Sandy Hook families’ offer, at $7 million because that amount was equal to a purchase price that would provide the same amount of money to the other creditors.

In a court filing last month, Murray’s lawyers called First United American’s request to disqualify The Onion’s bid a “disappointed bidder’s improper attempt to influence an otherwise fair and open election process.”

Murray’s lawyer questioned him Tuesday afternoon, then Jones’ attorney, Ben Broocks, cross-examined him into the early evening.

Broocks noted that the Sandy Hook lawsuit judgments could be overturned in pending appeals and got Murray to acknowledge that the Sandy Hook families’ offer in The Onion bid could fall apart if that happens. That’s because the percentage of the auction proceeds they would be entitled to could drop sharply and they wouldn’t get the $750,000 from the sale to give to other creditors.

Broocks also questioned Murray about last-minute changes to the proposed sale to The Onion, with Murray responding that they were the result of different viewpoints on the numbers being settled.

Auctioneer Jeff Tanenbaum on Monday defended both the value of the bid and its selection.

Putting Infowars up for auction

Up for sale were all the equipment and other assets in the Infowars studio in Austin, as well as the rights to its social media accounts, websites, video archive and product trademarks. Jones uses the studio to broadcast his far-right, conspiracy theory-filled shows on the Infowars website, his account on the social platform X and radio stations. Many of Jones’ personal assets also are being sold.

Jones has set up another studio, websites and social media accounts in case The Onion wins approval to buy Infowars and kicks him out. Jones has said he could continue using the Infowars platforms if the auction winner is friendly to him.

Jones is appealing the $1.5 billion in judgments citing free speech rights.

(AP)