A federal judge ruled on Friday that Jones’ personal assets should be liquidated, but he dismissed his company’s bankruptcy case.
The decision means that the future of his far-right media company, Infowars, is in doubt due to his multi-million dollar debt for making false claims about the Sandy Hook school shooting.
Judge Christopher Lopez of the US Bankruptcy Court in Texas approved Jones’ plan to convert his personal bankruptcy into a liquidation.
However, he dismissed the case of Free Speech Systems, the company he founded.
Despite his efforts to work with the families of the Sandy Hook victims, Jones was not able to reach an agreement.
It was not immediately clear what would happen to Free Speech Systems, which Jones established over the years through the sale of various products, such as dietary supplements.
However, both Jones and the families of the Sandy Hook school shooting victims said they believe that the company will eventually cease operating due to its massive debt.
According to the Sandy Hook families’ lawyers, the trustee appointed to oversee Jones’ liquidation now has the authority to control his various assets, such as Infowars.
The decision to dissolve Free Speech Systems’ case means that the families can start the process of collecting on the $1.5 billion they won in state court in Connecticut and Texas.
After the judge dismissed Free Speech Systems’ case, Jones said that his far-right media organization Infowars might continue operating as the company’s assets are being collected.
He also accused political groups of trying to take over the company.
According to his financial documents, Jones has about $9 million in assets.
Free Speech Systems, on the other hand, has about $6 million in cash and $1.2 million worth of inventory.
The court-appointed restructuring officer for the company, J. Patrick Magill, noted that the organization has a significant amount of cash on hand.
During the hearing, the Sandy Hook families’ lawyers accused Jones of misappropriating millions of dollars before and during the company’s bankruptcy.
They also questioned his sending his followers to his father’s website.
The families of the victims have a lawsuit pending in Texas, where Jones is accused of illegally taking money.
