Houston, Texas – A federal bankruptcy judge on Thursday blocked families of Sandy Hook victims from immediately collecting assets from conspiracy theorist Alex Jones’ media company, Free Speech Systems, as it undergoes liquidation in the Southern District of Texas.

Judge Christopher Lopez sided with court-appointed trustee Christopher Murray, who accused certain families of attempting a “value-destructive money grab” before an orderly wind-down and sale of the company could be completed. Murray had requested a 90-day pause on the ability for families and other creditors to collect proceeds from the sale of assets to prevent chaos and ensure fair distribution among all parties.

The legal dispute arose from defamation lawsuits filed in Texas and Connecticut by families of Sandy Hook Elementary School shooting victims, who were awarded nearly $1.5 billion in damages in 2022 for Jones’ repeated claims that the tragedy was a hoax. Despite the verdict, the families have been unable to collect funds as Jones filed for bankruptcy, leading to ongoing legal battles over liquidating his assets.

Lopez’s decision to convert Jones’ personal bankruptcy into a liquidation case while dismissing Free Speech Systems’ bankruptcy added complexity to the situation. This move, supported by Jones himself, raised concerns about the fair distribution of assets and potential disruptions to the ongoing operations of Infowars, managed by Free Speech Systems.

The Sandy Hook families in Texas sought to compel Free Speech Systems to surrender all assets, but faced opposition from both the court-appointed trustee and the families in Connecticut, who preferred an orderly liquidation process. The conflicting interests among the families underscored the challenges in reaching a consensus on how to handle Jones’ assets to satisfy the court judgments.

Despite the tensions among the families involved, Judge Lopez emphasized the importance of abiding by legal procedures and maintaining order in the liquidation process. The uncertainty surrounding the distribution of funds and the future of Infowars further complicated the already contentious legal battle, highlighting the emotional and financial toll of the litigation on all parties involved.

As Jones continues to grapple with the fallout from the defamation lawsuits, the fate of his personal assets and the future of Infowars remain uncertain. The ongoing legal wrangling underscores the complexities of balancing the rights of creditors, the demands of court judgments, and the challenges of overseeing a contentious liquidation process.