Sandy Hook families, who won $1.5 billion against Alex Jones, are offering to settle for about $85 million over ten years.
During Jones’ bankruptcy case last week in Houston, the families proposed the offer, viewing it as a practical resolution for both Jones and his company, Free Speech Systems.
Lawyers for the families are accusing Jones of mishandling finances, maintaining an ‘extravagant lifestyle,’ and failing to provide essential financial documents.
“Jones has failed in every way to serve as the fiduciary mandated by the Bankruptcy Code in exchange for the breathing spell he has enjoyed for almost a year. His time is up,” The lawyers stated.
The families’ lawyers presented Jones with two options: sell his estate and allocate the funds to creditors or commit to paying a minimum of $8.5 million yearly for a decade, plus 50% of any income exceeding $9 million annually.
During his Houston court hearing, Jones’ bankruptcy lawyer, Vickie Driver, stated that the suggested $85 million settlement over 10 years was too high and impractical for Jones to meet.
She said, “There are no financials that will ever show that Mr. Jones ever made that … in 10 years.”
According to a new bankruptcy plan filed last week, Free Speech Systems plans to pay creditors $4 million per year, down from an earlier estimate, while expecting to earn $19.2 million from merchandise sales next year, with operating expenses at $14.3 million.
Jones listed approximately $13 million in total assets in his recent bankruptcy court filings, including around $856,000 in different bank accounts.
Jones, initially making $20,000 biweekly, was recently bumped to $57,700 biweekly, totaling $1.5 million annually, as a restructuring officer deemed him “grossly” underpaid for his vital role in the media company under bankruptcy orders.
On Monday, Bankruptcy Judge Christopher Lopez rejected the $1.5 million salary increase for Alex Jones, stating that the pay raise seemed to lack proper adherence to bankruptcy laws, requiring a hearing.
If Jones rejects the families’ offer, Judge Lopez will decide the amount he owes to the families and other creditors.
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