Alex Jones Bankruptcy Case Just Keeps Getting Weirder

[LetMyPeopleVote]

Above the Law is having fun with the Alex Jones Bankruptcy. There have been three or so articles
https://abovethelaw.com/2022/04/alex-jones-pays-himself-18m-declares-bankruptcy-offers-sandy-hook-plaintiffs-change-he-found-in-couch-at-infowars-studio/

https://abovethelaw.com/2022/04/alex-joness-bankruptcy-lawyer-indignant-that-sandy-hook-plaintiffs-arent-grateful-he-spared-them-their-day-in-courthttps://abovethelaw.com/2022/04/hed-alex-jones-ordered-to-cough-up-1-million-gets-defamation-suits-delayed-with-conveniently-timed-bankruptcy-filing-dek//

https://abovethelaw.com/2022/04/shocker-sandy-hook-plaintiffs-say-alex-jones-may-not-have-been-entirely-truthful-in-infowars-bankruptcy-filing/

My favorite Above the Law post on this bankruptcy is the one when the Jones' attorney whines about people being mean to Jones
https://abovethelaw.com/2022/04/alex-joness-bankruptcy-lawyer-indignant-that-sandy-hook-plaintiffs-arent-grateful-he-spared-them-their-day-in-court/

The hearing last Friday was amusing. The US Trustee filed a really strong brief that Jones' attorney did not want to discuss. It was noted that one of Jones' attorneys bragged about using the bankruptcy process to force t
he plaintiffs to take less than they are entitled.

Link to tweet

https://abovethelaw.com/2022/05/alex-jones-bankruptcy-case-just-keeps-getting-weirder/
I

n short, the Trustee noticed that Jones is proposing a take-it-or-leave-it offer of $10 million in the Litigation Settlement Trust — less whatever the lawyers and trustees get paid — to force the Sandy Hook plaintiffs to drop their cases against him. And that he’s using subchapter V, which is supposed to protect mom-and-pop ventures with business debts of less than $3,024,725, not, say, eight-figures of tort liability from twenty-odd plaintiffs who most assuredly never did business with InfoWars.

In fairness, it was hard not to notice when Jones’s own lawyer Norm Pattis shot his mouth off to the Wall Street Journal , saying “We’re turning to the bankruptcy courts to compel the plaintiffs to estimate the value of their claims in open court by discernible evidentiary standards,” and adding that, “The plaintiffs have turned this litigation into a macabre morality play and have refused to negotiate in good faith. We hope they will show respect to the federal courts.”

If Pattis thought that his admission that his client was exploiting the bankruptcy process for litigation advantage was not going to end up in a federal filing, he thought wrong.

“These cases are demonstrably not about reorganizing, rehabilitating, or granting a fresh start to an honest, unfortunate debtor,” the Trustee went on. “The Debtors’ bankruptcy filings do not serve any recognized objective of the Bankruptcy Code. These Debtors have no businesses and no purpose to reorganize.”

The Texas Plaintiffs had non-suited the one debtor who was being sued in their lawsuits and the Connecticut plaintiffs just did the same

Link to tweet

Jones' flings make clear that these entities have no business or assets

By the admission of Jones’s own proposed restructuring officer, the three companies have no employees and virtually no assets and do no business — whereas Jones paid himself more than $20 million between 2018 and 2021, and his main company Free Speech Systems (FSS) netted $56 million last year. The Trustee accuses Jones of using “a novel and dangerous tactic that is abusive and undermines the integrity of the bankruptcy system” by “filing bankruptcy for three non-operating members of a larger enterprise to channel and cap liability against the other, revenue-generating members of that enterprise and its owner using a bankruptcy subchapter designed to aid small, struggling businesses.”

This is a fun case to watch. Jones is a liar and is trying to cheat these plaintiffs. The hearing later this month will be fun to watch

[exboyfil]

1. Maybe Jones can get his money back

by suing the lawyer for malpractice because that definitely was a bad piece of lawyering.

[LetMyPeopleVote]

2. I suspect that Jones was told that this sham bankruptcy will not work

The goal is to delay the state court lawsuits and here the bankruptcy stopped one lawsuit and delayed the others