Alex Jones filed for Infowars bankruptcy, but not for himself, as trials neared to award damages in libel cases he lost to Sandy Hook families because Jones feared lose credibility with listeners and that 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 important,” Jones’ representative Marc Schwartz said in federal bankruptcy court in Texas on Friday. “It would ruin his name and hurt his ability to sell goods.”
Randy Williams, an attorney representing eight families from Sandy Hook, Connecticut who are awaiting trial in August to see how much libel damages Jones will pay them, asked Schwartz in bankruptcy court on Friday: “How would that make him it hurt?
“Putting him out of business would hurt his brand value in terms of cash flow,” said Schwartz, who was answering questions as a proposed restructuring manager for three Jones-controlled business entities that filed for Chapter 11 protection earlier. this week.
Schwartz, who said Jones’ name was the ‘Coca-Cola of the conspiracy theory community’, said Jones relied on his brand to sell merchandise to his audience – a business that has grossed at least $76 million dollars in fiscal year 2019.
“If you look at the litigation impact in 2021, his estimated revenue based on merchant receipts is $56 million, down $20 million,” Schwartz said.
Schwartz was referring to three libel suits lost by Jones to the families of Sandy Hook last year after calling the massacre of 26 first graders and educators at Sandy Hook Elementary School “staged”, “synthetic”, “fabricated”, “hoax giant” and “completely wrong with actors”.
To date, Jones has spent $10 million in legal fees, according to bankruptcy papers.
Schwartz was called by Federal Bankruptcy Judge Christopher Lopez to answer informal questions after the judge ruled on Friday that he would not rule on two requests from 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 Sandy Hook boys killed in the Texas cases has asked the judge to dismiss the bankruptcy case.
“Let me tell you, I think we have a sinister and unworthy purpose here,” Maxwell Beatty said. “Even if I’m wrong, we don’t really intend to reorganize here.”
The first of two jury trials to award libel damages to the parents of Sandy Hook in Texas were due to begin on Monday.
The federal bankruptcy process replaced cases in the trial courts of Texas and Connecticut, at least for now.
The bankruptcy judge ordered a status conference for April 29.
rryser@newstimes.com 203-731-3342
