First American United Companies, which is affiliated with Jones’ dietary supplements businesses, asked U.S. Bankruptcy Judge Christopher Lopez in Houston to disqualify the bid by the Onion, a parody news site, and name its own $3.5-million bid as the winner.
“Its effect is to depress and lower the amount the Onion would need to bid in cash to ensure that it was the winning bid,” First American United Companies said in its objection. “This was not simply collaboration, this was outright collusive bid rigging.”The Onion and the bankruptcy trustee did not immediately respond to requests for comment. A representative for some of the Sandy Hook families declined to comment.
Infowars was briefly shut down after the sale was announced, but was back online within a day. The bankruptcy trustee charged with selling Jones’ assets, Christopher Murray, said at Thursday’s hearing that he shut down the business to ensure that its assets were not damaged or taken before the property could be transferred to the Onion.