A U.S. bankruptcy judge on Tuesday blocked the Onion from acquiring Alex Jones’ Infowars, ruling that the recent auction didn’t maximize value for creditors. Judge Christopher Lopez rejected claims of “collusion” but acknowledged a “good-faith error” by the bankruptcy trustee, who sought final bids too quickly without encouraging competitive bidding between the Onion and First American United Companies, a business linked to Jones.
Lopez said both offers undervalued Infowars, given Jones’ substantial debts, and directed the trustee to resolve creditor disputes before attempting another sale. The Onion had been declared the winning bidder in November, supported by Sandy Hook families—Jones’ largest creditors—who offered to forgo some repayment to increase the value of the Onion’s bid to $7 million. However, Jones and First American argued the Onion’s bid relied on “smoke and mirrors” rather than cash, falling short of First American’s $3.5 million cash offer.
The Onion had intended to transform Infowars into a parody site featuring “noticeably less hateful disinformation.” Despite the setback, the Onion’s CEO, Ben Collins, expressed ongoing interest in the purchase.
Jones, who declared bankruptcy in 2022 after being ordered to pay $1.3 billion in damages to Sandy Hook families for defamation, celebrated the ruling. The families’ attorney, Chris Mattei, criticized the decision but reaffirmed their commitment to holding Jones accountable for his actions.
Court-appointed trustee Christopher Murray defended the auction process as fair, noting First American’s complaints emerged only after losing. Lopez concluded the process left potential funds “on the table” and emphasized the need for a revised sale strategy.
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