NEW: Judge Blocks Sale Of Alex Jones’ InfoWars To The Onion

A bankruptcy judge has blocked a winning bid from satire outlet The Onion for Alex Jones’ InfoWars media platform, citing concerns with the auction process that prevented additional bids.

“I’m going to not approve the sale to the purchaser. I think there’s a great lack of clarity here,” Judge Christopher Lopez, a bankruptcy judge for the Southern District of Texas, said in his ruling on Tuesday. In reference to the auction process, the judge said it was “well intended,” but “simply did not maximize value in any way based upon the record before me.”

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On November 14, The Onion had emerged as the winning bidder over a company affiliated with Jones, whose platform was placed for sale as part of the astronomical $1.5 billion defamation penalty levied against him for questioning the Sandy Hook Elementary shooting back in 2012. Jones claimed that the parents of murdered children were “crisis actors,” a claim he has since retracted and apologized for, leading to a years-long civil case that accused him of causing “emotional distress” to the families.

The Onion’s bid was backed by the families of eight victims of the school shooting and one first responder. According to court documents, the outlet’s parent company, Global Tetrahedron, offered $1.75 million in cash along with a “credit”  from the families, who offered to forgo the entirety of their portion of the winning bid in order to support the effort. The bid was ultimately valued at roughly $7 million.

First United American Companies, which is affiliated with Jones and operates his nutritional supplements business, offered a competing bid worth roughly $3.5 million in cash.

After a two-day bankruptcy hearing this week, Judge Lopez concluded that he had several issues with the way the auction process played out. The court-appointed trustee in the case was given near universal control over the auction process and was allowed to select the winner through his own judgement.

The trustee had initially promised to host a live auction, though the process was later amended to include only “best and final bids,” which were kept under seal. After The Onion was declared the winner, Jones and First United American Companies filed a lawsuit aimed at stopping what they referred to as a “Frankenstein bid,” citing the “credit” put forward by the families.

While Lopez said he had no issue with the makeup of The Onion’s bid and that everyone acted in “good faith,” he concluded that the trustee “left a lot of money on the table, or potential for a lot of money on the table, potential for a lot of negotiation on the table” due to the secrecy involving the process, which prevented competing bidders from having adequate information about competitors.

Ben Collins, the CEO of The Onion, said in a statement that they are “deeply disappointed” in the decision, but “will continue to seek a resolution that helps the Sandy Hook families receive a positive outcome for the horror they endured.”

“We will also continue to seek a path towards purchasing InfoWars in the coming weeks. It is part of our larger mission to make a better, funnier internet, regardless of the outcome of this case,” he added.

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