A boy touches stockings, representing those killed in the December 14 shootings at Sandy Hook Elementary School, on Christmas morning in Sandy Hook Village in Newtown, Connecticut December 25, 2012.
A boy touches stockings, representing those killed in the December 14 shootings at Sandy Hook Elementary School, on Christmas morning in Sandy Hook Village in Newtown, Connecticut December 25, 2012. Reuters / Adrees Latif

Families of the victims of the 2012 Sandy Hook Elementary School massacre will be dismissed from the InfoWars bankruptcy case, allowing them to resume their defamation lawsuits against the website's owner, conspiracy theorist Alex Jones, attorneys said in court on Friday.

Lawyers for the families had accused the far-right wing website of seeking Chapter 11 protection in Texas for "sinister" purposes, and sought to have the bankruptcy dismissed.

They had alleged the case was not filed for a valid purpose under bankruptcy law, but to force the families into settlements instead of proceeding with trials that will determine the amount of damages they are owed for defamation judgments relating to Jones' false claims that the school mass shooting was a hoax.

InfoWars attorney Kyun Lee said on Friday that the dispute is close to being resolved, by allowing the families to withdraw their claims against the bankrupt InfoWars entities and resume litigation against non-bankrupt defendants, like Alex Jones.

"They decided they don't want to participate in these cases, and we're fine with that," Lee said.

The agreement with the Sandy Hook families has not been finalized, Lee said.

U.S. Bankruptcy Judge Christopher Lopez said he hoped for a resolution, but would continue to prepare for a May 27 hearing on whether or not the bankruptcy case should be dismissed.

Jones claimed the shooting, in which 20 first graders and six school employees were shot dead at the school in Newtown, Connecticut, was fabricated by gun-control advocates and mainstream media, adding to the immense pain of the parents and relatives of the victims.

InfoWars holding company, InfoW LLC, and two other media assets owned by Jones filed for Chapter 11 on April 17 after Jones and his media companies were found liable in multiple defamation lawsuits brought in Texas and Connecticut by families of the shooting victims.