Over Sandy Hook families’ objections, federal judge gives Alex Jones time to defend bankruptcy plans

NEWTOWN - A federal choose gave Sandy Hook households awaiting defamation damages trials in Connecticut and Texas part of what they wanted on Friday by agreeing to listen to their motions first to dismiss Alex Jones’ bankruptcies as “bad faith” filings.

However the decide additionally gave Jones’ attorneys a part of what they needed - enough respiratory room to organize an unhurried protection of their plan to pay the Sandy Hook families defamation damages Jones owes with out placing his conspiracy platform Infowars out of business.

“These are actually important points for the families and vital for the debtors,” Judge Christopher Lopez instructed a crowd of 60 attorneys and observers during a livestreamed conference in Southern Texas Chapter Court. “I get it that nobody likes the debtors, but they have a proper to defend themselves similar to anyone who comes earlier than me.”

Though the only motion Lopez took was to set hearing dates - the primary on arguments to dismiss the bankruptcies of three former Jones-controlled entities on May 27 - both sides were passionate.

One attorney representing mother and father of two slain Sandy Hook boys whose trials to award damages from defamation instances they received towards Jones in Texas have been delayed referred to as Jones’ 11-hour bankruptcy filings “unworthy and abusive.”

“I can’t consider a much less worthy function for chapter courtroom than the rehabilitation and reorganization of corporations that made tens of millions of dollars by mendacity,” said attorney Maxwell Beatty. “One among my shoppers held his son with a bullet gap in his head and Mr. Jones referred to as him a liar.”

The father the attorney was referring to is Neil Heslin, whose son was among the many 26 first-graders and educators slain in 2012 at Sandy Hook Elementary Faculty. Heslin and his son’s mom, Scarlett Lewis, have been scheduled to start out their jury trial to determine how a lot Jones owes them in damages last week.

Attorneys for Jones and the parent company of his broadcast and merchandising enterprise known as Free Speech Methods had been equally passionate. An legal professional for FSS said earlier than Jones filed for emergency bankruptcy safety, he was dealing with “financial deplatforming.”

“Spending tens of millions of dollars on trials in two places would devour belongings and will not result in economic restoration…(because) the plaintiffs all have legal responsibility loss of life penalties,” stated FSS attorney Ray Battaglia. “The doubtless impact of a (jury trial) judgment would be to close Free Speech Techniques down.”

While neither Jones nor Free Speech Methods filed for bankruptcy protection, they've been preserved from defamation award trials in the intervening time in Texas and Connecticut, partially to ensure there's sufficient money to pay the Sandy Hook families when their claims are settled, Battaglia said.

Jones has suffered financially since he referred to as the worst crime in Connecticut history “staged,” “artificial,” “manufactured,” “an enormous hoax,” and “utterly pretend with actors,” paying at least $10 million in legal charges and dropping a minimum of $20 million due to the Sandy Hook lawsuits, his representatives said in courtroom.

Jones, whose credibility in the conspiracy concept community was likened by one of his representatives in court docket to the Coca-Cola brand, did not want to file for chapter himself for concern his product gross sales would suffer, representatives said in courtroom.

The Sandy Hook families’ attorneys argued unsuccessfully in court docket on Friday that day by day households wait for the decide to rule on the validity of Jones’ bankruptcy claims, they're spending money they don’t have.

“The creditors listed below are totally different than regular collectors because they're victims, and proper now the victims are spending money,” stated Beatty, who requested the choose to schedule the dismissal listening to subsequent week. “This is incurring fees … on individuals who have already suffered sufficient.”

Jones’ lead bankruptcy lawyer argued his client deserved equal consideration.

“No matter how unhealthy Mr. Jones’ conduct was, the (chapter) events are entitled to due course of,” mentioned attorney Kyung Lee. “You must give us 21 days’ notice.”

The decide gave Jones one month.

“I am giving everybody lots of time as a result of I would like everyone to put up their best evidence,” Lopez mentioned. “I am going to be deliberate and not rush something, however you'll get an answer from me actually fast.”

rryser@newstimes.com 203-731-3342