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Published on 3/13/2023 in the Prospect News Distressed Debt Daily.

Free Speech Systems: Sandy Hook families file suit to block discharge

By Sarah Lizee

Olympia, Wash., March 13 – Free Speech Systems LLC shouldn’t be able to discharge $1.4 billion of debt owed to families of Sandy Hook shooting victims, the group said in court documents filed with the U.S. Bankruptcy Court for the Southern District of Texas on March 10.

The families have filed an adversary proceeding in the case in an attempt to block the debt discharge.

The group said the debt is not dischargeable under bankruptcy code because it is the result of a willful and malicious injury.

The debt comprises compensatory and punitive damages awarded to the familiars in a Connecticut state court action in which Alex Jones and Freedom Speech Systems were held liable for defamation and intentional infliction of emotional distress.

“Bankruptcy law holds a debtor who has caused willful and malicious injury – as Alex Jones has done – accountable, no matter how many bankruptcies the debtor files,” the group said in court documents.

Austin, Tex.-based Free Speech Systems filed its bankruptcy case on July 29, 2022 under Chapter 11 case number 22-60043.


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