In a recent development in the personal bankruptcy case of conspiracy theorist Alex Jones, the families of Sandy Hook shooting victims have offered to settle the nearly $1.5 billion legal judgments against him for calling the 2012 school shooting a hoax. The families propose a settlement worth $85 million over 10 years, aiming to help resolve both Jones' personal bankruptcy and that of his company, Free Speech Systems.

The offer was outlined in a legal filing made by the families' lawyers in Houston last week. They believe that this proposal provides a viable solution to the ongoing bankruptcy reorganization cases. According to the families' lawyers, Jones has failed to serve as the fiduciary required by the Bankruptcy Code and they argue that his time is up.

Two options were presented to Jones by the families' lawyers: liquidate his estate and distribute the proceeds to the creditors, or pay a minimum of $8.5 million annually for a decade, along with 50% of any income exceeding $9 million per year.

During a court hearing in Houston, Jones' personal bankruptcy attorney, Vickie Driver, expressed skepticism about the $85 million settlement offer, asserting that it was too high and unrealistic for Jones to pay. Driver stated, "There are no financials that will ever show that Mr. Jones ever made that... in 10 years."

In a recently filed bankruptcy plan, Free Speech Systems, Jones' company, mentioned its ability to pay creditors approximately $4 million annually, reduced from an earlier estimate of $7 million to $10 million. The company anticipates generating around $19.2 million in the coming year from the sale of dietary supplements, clothing, and other merchandise featured on Jones' shows. Meanwhile, operational expenses, including salaries, are projected to total approximately $14.3 million.

Jones, in his most recent financial statements filed with the bankruptcy court, has listed about $13 million in total assets, with approximately $856,000 spread across various bank accounts.

Under the existing bankruptcy case orders, Jones had been receiving a salary of $20,000 every two weeks, amounting to $520,000 annually. However, a court-appointed restructuring officer recently increased Jones' pay to roughly $57,700 biweekly, equivalent to $1.5 million per year, arguing that he had been significantly underpaid considering his vital role in the media company.

Bankruptcy Judge Christopher Lopez, however, rejected the $1.5 million salary, stating that the pay raise was not made in accordance with bankruptcy laws. As a result, a hearing is scheduled to determine the appropriate salary.

If Jones declines the families' settlement offer, Judge Lopez will decide the amount he must pay to the families and other creditors.

The lawsuits brought against Jones by the families of the Sandy Hook shooting victims were initiated after he repeatedly claimed on his show that the tragedy never occurred and was instead a staged event used to push for stricter gun control laws. The families, who have won judgments totaling nearly $1.5 billion, testified during the trials about the harassment and threats they endured from Jones' followers, who accused them of being crisis actors and even confronted them in person.

Jones is currently appealing the judgments, arguing that he did not receive fair trials and that his speech is protected by the First Amendment. However, Judge Lopez previously ruled that Jones cannot use bankruptcy protection to avoid paying over $1.1 billion of the debt. The final resolution of this high-profile case remains pending, with the families' proposed settlement attempting to provide a path forward in the bankruptcy proceedings.