Court Blocks Onion's Purchase of InfoWars, Raising Questions About Bankruptcy Sales

A federal judge stopped The Onion's attempt to buy InfoWars in November 2024, questioning whether courts should allow deals where the buyer plans to shut down the business rather than keep it running. Sandy Hook families, owed $1 billion by InfoWars' owner, had supported the purchase. The ruling suggests courts may now scrutinize such sales more carefully, even when creditors approve them.