
A federal judge overseeing a bankruptcy case involving radio broadcaster Alex Jones has intervened in the acquisition of his Infowars website, trademark and related assets by The Onion.
On Thursday, the judge, Christopher Lopez, ordered an evidentiary hearing to determine if a blind auction related to the disposition of the Infowars assets was conducted fairly and in line with his earlier rulings.
“We’re all going to an evidentiary hearing, and I’m going to figure out exactly what happened,” Lopez said on Thursday, adding that “no one should feel comfortable with the results of this auction.”
The auction was connected to Lopez’s earlier ruling that the bankruptcy cases involving Jones and his Free Speech Systems should be converted into a liquidation. The bankruptcies were tied to two civil judgments entered against Jones and Free Speech Systems after families of the mass shooting spree at Sandy Hook Elementary School sued him for defamation. One judgment was for $1.5 billion.
Earlier this week, the blind auction was conducted for the assets of Free Speech Systems, including the Infowars website, an online storefront, the trademark for the radio program, social media accounts and other materials.
Jones had earlier expressed a desire that supporters of Infowars band together and submit a bid of their own, which would have allowed him to continue broadcasting the show for the foreseeable future, although he would have been a contractor or employee of whatever emerged.
At least two companies submitted blind bids during the auction, including The Onion’s parent company, Global Tetrahedron, which said it intended to relaunch the publication as a satire unto itself.
The other known bidder was First United American Companies, a company that has ties to an online website used by Jones to sell items to his audience.
First United American requested an emergency hearing after The Onion emerged as the winner of the blind auction. In their motion, lawyers representing the company said they were concerned with how the auction was conducted. Earlier reports indicated First United American submitted a bid to acquire Infowars for around $3.5 million, and that Global Tetrahedron’s bid involved a smaller amount of cash.
Global Tetrahedron’s wager was backed in part by the families of the Sandy Hook victims, who agreed to forego a portion of the proceeds in order to pay down Jones’ debts owed through the civil cases.
The sale of the Infowars website and other assets was well-publicized as a blind auction for weeks, according to online materials reviewed by The Desk. Bidders were required to submit their wagers in writing, and place them in sealed envelopes, to be opened and evaluated by the trustee on the day of the auction. Additionally, interested parties were required to affirm their ability to pay a cash deposit as proof that they could financially back their bids, among other requirements.
On Thursday, the trustee overseeing the auction said they followed this process, as well as other requirements laid out by the bankruptcy court weeks ago. Still, the judge in the case ordered the evidentiary hearing, which is scheduled to take place next week.
