In a recent development in the legal battle between Sandy Hook families and conspiracy theorist Alex Jones, the families have offered to settle the debt for only a fraction of the amount won in legal judgments. The families, who had previously won nearly $1.5 billion in judgments against Jones for calling the 2012 Connecticut school shooting a hoax, have proposed a settlement of at least $85 million over 10 years. This offer was made in Jones' personal bankruptcy case in Houston.

According to the families' lawyers, they believe that this settlement proposal could help resolve both Jones' personal bankruptcy case and the bankruptcy reorganization case of his company, Free Speech Systems. However, the lawyers accused Jones of failing to curb his personal spending and maintain the value of his holdings. They also claimed that Jones had not sold any of his assets or produced certain financial documents. In a strongly worded document, the lawyers stated, "Jones has failed in every way to serve as the fiduciary mandated by the Bankruptcy Code in exchange for the breathing spell he has enjoyed for almost a year. His time is up."

The families' lawyers presented Jones with two options: either liquidate his estate and give the proceeds to creditors or pay them at least $8.5 million per year for 10 years, along with 50% of any income over $9 million per year. During a court hearing in Houston, Jones' personal bankruptcy lawyer, Vickie Driver, expressed that the $85 million, 10-year settlement offer was unrealistic for Jones to pay, stating that there were no financials to support such a payment.

In a bankruptcy plan filed on November 18, Free Speech Systems, Jones' company, stated that it could afford to pay creditors approximately $4 million per year, down from an earlier estimate of $7 million to $10 million annually. The company projected making about $19.2 million in the next year from selling merchandise promoted on Jones' shows, while operating expenses, including salaries, would total about $14.3 million.

In his most recent financial statements filed with the bankruptcy court, Jones listed approximately $13 million in total assets, including $856,000 in various bank accounts. He had been receiving a salary of $20,000 every two weeks, or $520,000 per year, under the bankruptcy case orders. However, this month, a court-appointed restructuring officer increased Jones' pay to about $57,700 biweekly, or $1.5 million per year, claiming that he was being “grossly” underpaid considering his importance to the media company. Nevertheless, Bankruptcy Judge Christopher Lopez rejected the $1.5 million salary increase, stating that it did not appear to be made properly under bankruptcy laws and that a hearing was necessary.

The legal battle between the Sandy Hook families and Jones stems from Jones repeatedly claiming on his show that the Sandy Hook shooting never happened and was staged to tighten gun laws. While some relatives of the shooting victims sued Jones and won nearly $1.5 billion in judgments against him, Jones is currently appealing these rulings, arguing that he didn't receive fair trials and that his speech was protected by the First Amendment.

After the shooting at Sandy Hook Elementary School, where 20 children and six educators were killed by a gunman, the families of the victims faced harassment and threats from believers of Jones' conspiracy theories. These individuals accused the grieving families of being "crisis actors" and claimed that their children never existed. The families' testimonies during the trials shed light on the distress they endured due to Jones' beliefs.

Jones filed for bankruptcy last December after being ordered to pay the families, but a federal bankruptcy court ruled in October that the bankruptcy protection does not exempt him from paying the compensatory and punitive damages he owes. District Judge Christopher Lopez stated that bankruptcy protection does not apply to findings of "willful and malicious" conduct.

The families of the Sandy Hook victims have criticized Jones for his lack of cooperation with the bankruptcy process and his refusal to adhere to a reasonable budget. They also argued that he has not sold any assets to repay the debt. They have called for the closure of Jones' bankruptcy case by February and have presented him with the options of either paying at least $85 million over 10 years or liquidating his assets. The families argue that the Chapter 11 cases must be resolved soon, as Jones' estate cannot sustain an indefinite bankruptcy.