A company affiliated with conspiracy theorist Alex Jones is contesting the recent purchase of Infowars by the satirical news website, The Onion, claiming the auction process was rigged in favor of The Onion’s bid. The challenge, filed on Monday in U.S. Bankruptcy Court, accuses the parody site of securing the assets of Infowars for far less than their true value—offering half the cash amount of the bid it submitted.
First American United Companies, a business tied to Jones’ dietary supplements empire, is calling for the bankruptcy judge to reject The Onion’s winning bid and instead award the assets of Infowars to its own $3.5 million offer. The objection claims that The Onion’s winning bid was artificially reduced by the influence of the families of the Sandy Hook shooting victims—whose lawsuits have been the catalyst for Jones’ bankruptcy.
Jones, the founder of Infowars, was forced into bankruptcy proceedings after courts ruled that he owed $1.5 billion in damages for defaming the families of the 2012 Sandy Hook Elementary School massacre victims. He falsely claimed that the shooting was a hoax, and his promotion of these baseless conspiracy theories led to widespread distress for the grieving families.
The heart of First American United Companies’ objection lies in its accusation that the bankruptcy auction was improperly influenced by the Sandy Hook families’ involvement. According to the company’s court filing, the bankruptcy trustee—who is responsible for overseeing the sale of Jones’ assets—allowed The Onion to bid at a reduced amount by factoring in the future revenue share that the Sandy Hook families agreed to take in place of an upfront payment.
The Onion’s bid was valued at approximately $7 million, largely due to the Sandy Hook families’ agreement to accept a percentage of future profits from Infowars, rather than a full lump-sum payment. The Onion’s winning bid of $1.75 million in cash has been disputed by First American United Companies, which argues that this arrangement constitutes “collusive bid rigging” that undermines the integrity of the auction process.
Christopher Murray, the court-appointed bankruptcy trustee, dismissed these allegations in a filing on Monday, describing the objection as an attempt by a “disappointed bidder” to manipulate the outcome of a fair and open auction. Murray asserted that the trustee and his team would not be swayed by such claims and would stand by the process.
On Thursday, The Onion confirmed its winning bid for Infowars’ assets, including its intellectual property, customer lists, production equipment, and select social media accounts. The Onion promised to reform the website by replacing its “relentless barrage of disinformation” with what it called “noticeably less hateful disinformation.” The move has raised eyebrows, given The Onion’s reputation for satirical content that often mocks real-world events and figures, including conspiracy theories.
If approved, the sale would effectively end Infowars’ reign as one of the most prominent purveyors of far-right conspiracy theories. Infowars was briefly shut down following the announcement of the sale, though it was back online within 24 hours. The temporary shutdown was aimed at safeguarding the company’s assets during the transition process.
The Sandy Hook families have been instrumental in the auction’s outcome, as they agreed to forgo part of their defamation judgment payouts to ensure that The Onion could secure Infowars. By agreeing to accept future revenue from the website instead of an immediate lump-sum payment, the families hope to prevent other right-wing content creators from acquiring the site and continuing the spread of conspiracy theories.
However, not all the families involved in lawsuits against Jones are satisfied with the agreement. Some families, including those who have pending trials in Texas, did not agree to forgo part of their payment, raising concerns that the proceeds of the sale could be divided unevenly.
While the sale of Infowars’ assets is a significant chapter in the ongoing legal battles, Jones’ legal troubles are far from over. Courts in Connecticut and Texas have ruled that Jones intentionally defamed the Sandy Hook families, and those judgments remain largely unaffected by the bankruptcy. U.S. Bankruptcy Judge Christopher Lopez has ruled that the defamation judgments against Jones cannot be discharged through the bankruptcy process, meaning that Jones remains liable for the majority of the damages even after the sale of Infowars.
The Onion’s purchase of Infowars, if approved, marks the next step in the complex legal and financial aftermath of Jones’ far-reaching conspiracy network. The case will continue to unfold as Judge Lopez considers whether to approve the sale and address the concerns raised by First American United Companies.
The bankruptcy case remains under intense scrutiny as legal experts, the media, and the public await further developments. Judge Lopez has indicated he will hold additional hearings to examine the transparency of the auction process and determine whether the sale should be finalized.
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