(Photo by Oli Scarff/Getty Images)

Last Friday, bankruptcy attorney Kyung Shik Lee chastised Sandy Hook plaintiffs for complaining about being robbed of their day in court.

“It resolves disputes that have been going on for years… (but) I hear nothing but complaints from those who want the money or those who are entitled to it,” said he whispered in Victoria of US Bankruptcy Judge Christopher Lopez, Texas courtroom.

And by ‘bickering’, he means to sue to recover damages after Jones called grieving parents ‘crisis actors’, precipitating years of harassment and death threats from his audience. disturbs.

On the eve of a trial to determine damages, Jones placed three LLCs into bankruptcy, halting court proceedings in Connecticut and Texas. All major creditors listed are tort litigants, and Jones entities have made no secret that they are using the bankruptcy court to manage litigation liability.

“The bankruptcy code and the courts are the appropriate vehicle” to resolve “a sad and complex situation,” Lee told the court last week, adding that there were “limited funds and we are trying to maximize them to let them go to the plaintiffs.” And by “limited funds,” he means the $10 million Jones has agreed to contribute over five years to about 20 plaintiffs if and only if they agree to drop their claims against him and its main company Free Speech Systems, which earned $56 million last year.

“We are looking to the bankruptcy courts to compel plaintiffs to estimate the value of their claims in open court against discernible standards of proof,” said Alex Jones attorney Norman Pattis. the wall street journal Wednesday, conveniently ignoring the fact that the Texas plaintiffs were barred from “estimating[ing] the value of their claims in open court” when Monday’s lawsuit was canceled due to the timely Chapter 11 filing.

“The plaintiffs have turned this litigation into a macabre moral game and have refused to negotiate in good faith,” he continued indignantly. “We hope they show respect to the federal courts.”

Let’s not dwell on the resounding irony of the lawyer who participated in the discovery so patently improper that it resulted in the death penalty for his client. in two states lecture opposing parties on respect for justice.

In court, the plaintiffs pointed out that, according to the statement of Chief Restructuring Officer Marc Schwartz, the Jones entities do not engage in any activity and only recently began collecting a monthly royalty on the Infowars brand.

I learned that the debtor[s] have no other purpose than to hold assets that can be used by other entities. They do not undertake any commercial activity, they do not sell, rent or rent anything to others. Their assets do not bring them any income. They don’t have a bank account and don’t pay anyone money for any reason. They have no debts or other liabilities other than those related to pending or potential litigation. For these reasons, they do not have financial statements or accounting books and they do not file income tax returns.

US bankruptcy trustee Kevin Epstein has filed a vehement objection to emergency movement to appoint trustees for Jones’ proposed dispute resolution trust scheme, arguing that corporations have no right to file under Subchapter V at all. The plaintiffs agreed, and Judge Lopez seemed somewhat somewhat skeptical of Infowars’ position.

The companies therefore filed this memorandum defend the regularity of a Subchapter V filing. See if you can spot the slippage.

Debtor InfoW is the defendant in a series of lawsuits in Texas and Connecticut arising out of certain statements made by Alex Jones and has been litigating those claims for 10 years.

InfoW LLC isn’t the “defendant” in the Sandy Hook lawsuits – it’s one of many defendants, including Alex Jones and Free Speech Systems, who both take advantage of the “exit the free trial” card provided by this bankruptcy without having disclosing their important assets.

“They want to benefit from bankruptcy without being bankrupt,” plaintiffs’ attorney Randy Williams said. Connecticut Post. “Mr Jones and (FSS) are staying out of it, but that’s not right; they have the advantage of preventing this case from moving forward on Monday, and our people are waiting to liquidate their claims.

There’s also the minor issue that these claims weren’t filed until 2018, so while the plaintiffs have been mourning their dead children for a decade, they’ve only been fucked by Alex Jones’ lawyers for four years. .

The memorandum relies on a 2021 Ordered by Judge Lopez, ruling that a company that owned a heat recovery facility was still qualified to file a claim under Subchapter V even if it was not operational at the time of filing. By Infowars logic, taking steps to prepare three midstream companies with approximately no assets for bankruptcy makes Jones LLC a “business” for the purposes of the law. Ipso facto expecto patronum they are like a power generation company that owned both real and tangible property and had multiple employees.

It remains to be seen whether Judge Lopez will allow himself to be convinced by this pellucid logic. There’s also the minor issue that the waste heat company was actually trying to liquidate the company and hadn’t made several public admissions that it was simply using bankruptcy court as a litigation tool to evade jury trials in several states.

The next hearing is Friday at 3 p.m. local time, by which time at least one group of plaintiffs will likely have filed a motion to dismiss and/or dismiss the motions in state court to begin the jury trial. Listen in at (832) 917-1510, conference code 590153, or wait until we tell you about it on Monday. Should be a hater!

Alex Jones did not file for bankruptcy ahead of Newtown trial as it could ‘hamper his ability to sell goods’> [Connecticut Post]
InfoW, LLC (22-60020) [Bankruptcy Docket, via Court Listener]
IWHealth, LLC (22-60021) [Bankruptcy Docket, via Court Listener]
Jail Planet TV, LLC (22-60022) [Bankruptcy Docket, via Court Listener]

Dye Liz lives in Baltimore where she writes on law and politics.