Firms owned by far-right radio host Alex Jones are receiving advice from restructuring advisers and considering options, including a possible bankruptcy filing after being hit with lawsuits over Jones’ conspiracy theories, according to someone knowledgeable about the subject.
A Chapter 11 filing would seek to allow Jones businesses, such as Infowars and Free Speech Systems, to continue operating while staying civil lawsuits against them, said the person, who asked not to be identified because discussions are private.
Representatives for Infowars and Free Speech Systems did not immediately respond to requests for comment outside of normal business hours. Pattis & Smith, a law firm that represents Jones and his businesses, also did not respond to requests for comment.
Last year, Jones and his companies were found liable in a defamation lawsuit brought by relatives of children killed in the 2012 Sandy Hook school massacre in Newtown, Connecticut, after Jones called the hoax shooting. A trial in Connecticut to determine the extent of the damage has not yet taken place. He was also found liable in similar proceedings in Texas.
Lawyers representing Jones and his companies said the defamation lawsuit was strategically brought to silence their free speech on matters of public interest, according to court documents.
Connecticut and Texas judges issued default judgments against Jones after he failed to deliver documents that included financial information. Pattis & Smith said the plaintiffs’ investigation into the financial ties between Jones and its various entities amounts to a “collection action” and a “fishing expedition.”
In March, attorneys representing relatives of victims of the Sandy Hook shootings sought an arrest warrant for Jones after he skipped a court-ordered deposition, citing health reasons. Jones appeared for deposition after facing hefty fines.