Along with the denying the proposed deal, a federal judge also told the Chapter 7 trustee that he's no longer authorized to sell Infowars' assets.

A judge will hear arguments today and decide whether to approve a settlement among Sandy Hook families about dividing $16M from Alex Jones’ bankrupted estate.

The judge also shut down the future sale of Infowars' assets, leaving the trustee authorized to sell only the company’s equity.

The ruling by a U.S. bankruptcy judge in Houston further complicates how and when Jones' bankruptcy case will be resolved and when the families he defamed will be paid.

A US bankruptcy judge has blocked a settlement between families who sued Alex Jones over his false claims about the 2012 Sandy Hook Elementary School mass shooting, saying their attempt to divide the bankrupt conspiracy theorist's assets exceeded his court's authority.

The dispute between Sandy Hook families and Infowars owner Alex Jones that have eluded resolution for 2 ½ years in bankruptcy court could be resolved today.

A U.S. bankruptcy judge on Wednesday blocked a settlement between families who have sued Alex Jones over his false claims about the 2012 Sandy Hook Elementary School mass shooting, saying their attempt to divide the bankrupt conspiracy theorist's assets exceeded his court’s authority.

The decision complicates a proposed sale of Jones' Infowars platform, and could spur divisions between families who sued Jones and won nearly $1.3 billion in Connecticut court cases and those who won $50 million in Texas courts.

This is masterful, creative lawyering, but at its core it is something I can’t approve,” federal Bankruptcy Judge Christopher Lopez said in his Texas courtroom