The families of the victims of the Sandy Hook massacre are offering to settle conspiracy theorist Alex Jones' $1.5 billion legal debt for only $85 million that would be paid over the next ten years.
The case against Jones revolves around him calling the 2012 Connecticut school shooting a "hoax." The families' offer was made in Jones' bankruptcy case in Houston last week.
Alex Jones' Sandy Hook Case
In a legal filing, lawyers representing the victims' families said they believed the proposal was a viable way to help resolve the bankruptcy reorganization cases of Jones and his company, Free Speech Systems.
However, in the sharply worded document, the families' attorneys continued to accuse the Infowars host of failing to curb his spending and "extravagant lifestyle." They also alleged that he was unable to preserve the value of his holdings as he refused to sell assets and was unable to produce certain financial documents, as per Politico.
In a statement, they said that the Infowars host failed in every way to serve as the fiduciary mandated by the Bankruptcy Code in exchange for the leeway that he was given for nearly a year. The families' lawyers offered Jones two options: either liquidate his estate and give the proceeds to creditors or pay them at least $8.5 million a year for the next decade, plus 50% of any income over $9 million yearly.
On Monday, during a court hearing in Houston, Jones's bankruptcy lawyer Vickie Driver, suggested that the $85 million, 10-year settlement offer was too high and unrealistic for her client to pay.
She added that no financials would ever show that her client made that much in 10 years. Free Speech Systems said in a new bankruptcy plan filed on Nov. 18 that it could afford to pay creditors roughly $4 million annually. This was down from a previous estimate of $7 million to $10 million per year.
Jones's company added that it expected to make roughly $19.2 million next year from selling the dietary supplements, clothing, and other merchandise that the Infowars host promotes on his shows. It added that operating expenses, including salaries of employees, would total roughly $14.3 million, according to the Associated Press.
A New Settlement Offer
The Infowars host personally listed roughly $13 million in total assets in his most recent financial statement with the bankruptcy court. This includes approximately $856,000 in various bank accounts that he owns.
Under the bankruptcy case orders, Jones has received a salary of $20,000 twice a month, equating to roughly $520,000 per year. However, this month, a court-appointed restructuring officer increased his pay to about $57,7000 every two weeks, bringing his yearly salary to about $1.5 million.
On Monday, Judge Christopher Lopez, seeing the bankruptcy case, ejected Jones' $1.5 million salary. He said that the pay raise did not appear to have been made properly under bankruptcy laws and added that a hearing needed to be held.
The development comes after the judge ruled last month that Jones cannot use his bankruptcy to discharge defamation judgments against him, said Yahoo Finance.
