InfoWars parent company files for bankruptcy
Free Speech Systems LLC filed for bankruptcy on Friday as Mr. Jones, its founder, and the company could face up to $150 million in damages at trial for lies pushed by Mr. Jones about the 2012 Sandy Hook Elementary School filming in Newtown, Connecticut.
Free Speech Systems LLC’s filing for bankruptcy would typically end the trial, which is being held in Austin, Texas, but according to a court filing, the company plans to ask a bankruptcy judge to let the trial continue.
The company is hoping for an emergency hearing on Monday, according to Reuters.
Mr. Jones and the company could try to use the bankruptcy case to limit the amount of damages awarded by a jury.
Three other InfoWars entities suggested $10 million to end the case in April, well below any amount offered by families of Sandy Hook victims.
This proposal also added protections against legal action for Mr. Jones and his company.
These three entities, InfoW, IW Health and Prison Planet, have already declared bankruptcy and voluntarily ended their litigation last month when the Sandy Hook families removed them as defendants in the defamation case.
Last year, Mr Jones was found liable in lawsuits brought by the Sandy Hook families over his false claims that the shooting at the school was faked.
The judgments came after Mr Jones went against court orders and refused to hand over documents related to the case.
The cases have since been prepared for trial to decide damages. The first started in Austin.
Mr Jones claimed the shooting – in which 26 people were killed, 20 children and six staff – was faked by those calling for tougher gun control measures, aided by the press.
He has since admitted that the massacre did take place.
Free Speech Systems restructuring adviser Marc Schwartz said in a court filing that it was in the company’s best interests to press ahead with the ongoing lawsuit to determine damages because large sums of money had been spent by both parties.
The Sandy Hook families said the April bankruptcy filing was a “sinister” attempt to protect Mr Jones’ assets from liability.
Regarding the latest bankruptcy filing, Schwartz said the Sandy Hook-related court case caused InfoWars to shut down major internet institutions, social media and financial institutions and its business declined because of it. .
Attorney Mark Bankston represents the Sandy Hook families. He texted Reutersstating that “our clients are happy that despite the bankruptcy, their trial is continuing and the jury is returning a verdict”.
“Now InfoWars is heading straight for its long-awaited review,” he added.