Simply once you thought the Diamond Chapter Saga had quieted down…a brand new and much more sudden lawsuit has entered the world.
As first reported at Graphic Coverage, Sparkle Pop has filed a criticism in opposition to Alliance Leisure, claiming that Alliance breached NDAs, stole commerce secrets and techniques and engaged in “Tortious Interference with Employment Contracts,” and, in lay phrases, meddled with Sparkle Pop’s acquisition of Diamond’s enterprise property.
Who the what now? Sparkle Pop is the holding firm (a division of Advert Populum) that bought the property of Diamond Comedian Distributors, Diamond E-book Distributors, Diamond Choose Toys & Collectibles, and CGA Collectible Grading Authority throughout chapter proceedings. Alliance Leisure was the excessive bidder for Diamond et al earlier than cancelling the acquisition on the grounds that “Diamond” had misled them concerning the termination of their contract with Wizards of the Coast. This choice additionally resulted in a authorized criticism filed BY Alliance in opposition to Diamond.
The inciting incident for the Sparkle Pop movement was Alliance hiring seven Diamond staff, as extensively reported final week. You possibly can learn the entire criticism right here. (additionally embedded beneath.)
First my very own ideas: I do not know what that is all about. From all experiences, Sparkle Pop has made no statements to both publishers or the remaining Diamond staff about their plans for his or her Diamond property, so simply what enterprise has been broken is a official query. Particularly provided that Sparkle Pop’s first act was to put off a bunch of Diamond and DST staff (together with virtually all of the remaining model managers) and shut down DST. AND much more provided that Sparkle Pop has not been paying distributors/publishers for brand new invoices.
On condition that Common can be hiring Diamond staff and is believed to be truly establishing a competing comics distribution enterprise, this will get even wilder.
The criticism is pretty simple so you may learn it for the main points however a couple of notes that could be of curiosity.
The primary criticism paints all of Alliances actions as “spurious” and nefarious:
Alliance abused the chapter course of to achieve inside entry to Diamond Comedian’s staff, commerce secrets and techniques, and proprietary data, all whereas delaying the sale of property to official purchasers. When Sparkle Pop lastly closed the sale of Diamond Comedian, Alliance pulled the rug out from beneath each vendor and purchaser, participating in a sudden and coordinated raid to poach seven key Diamond Comedian gross sales and advertising and marketing staff, successfully hobbling the enterprise. Alliance additionally exploited its inside information of Diamond Comedian’s confidential data to usurp key distribution relationships with distributors and clients, additional undermining the enterprise.
Alliance dedicated these unhealthy religion acts regardless of having signed strict non-disclosure and non-solicitation agreements from Diamond Comedian that bar its conduct. Alliance has violated these strictures overtly, successfully daring its counterparties and victims to sue if they need any hope of redress. This lawsuit responds to that problem.
Some dates within the timeline are nailed down for at any time when the e book about all that is written, together with the timeline of the 110 potential consumers who signed NDAs to look beneath Diamond’s hood previous to the chapter. Alliance signed the NDA in October of 2024. Advert Populum, LLC, the father or mother firm of Sparkle Pop, signed the NDA on October 26, 2024.
One of many largest questions I’ve had over the previous couple of months is why Raymond James/Diamond rejected the upper Alliance bid for the decrease mixed Common/Advert Populum bid, as declared in court docket filings on April sixth, which sparked a criticism by ALLIANCE to as soon as once more be named the winner. The Sparkle Pop criticism offers one tackle what occurred after the Alliance bid was declared the winner again on March twenty fifth.
Over the following few days AENT and Diamond Comedian exchanged drafts of a proposed asset buy settlement. Nonetheless, AENT insisted on together with language that was inconsistent with the settlement positioned on file on the public sale. Accordingly, Diamond Comedian proceeded to hunt approval to promote its property to the Sparkle/Common group. 27. On April 6, 2025, AENT filed an adversary criticism in opposition to Diamond Comedian and sure of its associates, in search of to be reinstated because the successful bidder.
In line with Sparkle Pop, Alliance’s dropping their bid (which they claimed was because of the WotC deception) was “spurious.”
Nonetheless, as demonstrated by Alliance’s course of conduct, as a substitute of continuing with the transaction as deliberate, Alliance used its place because the successful bidder to bully Diamond Comedian into making additional concessions. Moreover, Alliance abused the bidding course of to impede the joint bid of Sparkle Pop and Common, who genuinely meant to buy the Diamond Comedian property for honest market worth. Alliance’s conduct delayed that course of, imposing pointless prices on Sparkle Pop, Common, and Diamond Comedian. The bidding course of additionally allowed Alliance to acquire key confidential data and commerce secrets and techniques from Diamond Comedian, which it then abused to successfully usurp important firm property with out paying for them.
In line with Sparkle Pop, on Could sixteenth, the day after the sale to Common/AP closed,
Mike Schimmel, the top of gross sales at Diamond Comedian, abruptly resigned. 40. On or about Could 23, 2025, six different key staff within the gross sales and buying departments of Diamond Comedian gave one week’s discover of their intent to resign from the corporate, together with the Supervisor of Gross sales, Director of Ecommerce Gross sales, Enterprise Growth Supervisor, the second in command within the buying division, a buying supervisor, and an assistant supervisor within the merchandise workforce. The simultaneous resignation indicated that the resignations have been coordinated.
Remark: Sparkle Pop omits point out of the mass layoffs that took ALSO place on Could sixteenth – many Diamond staff have been “open to work” on Linked in since March, so it’s laborious responsible anybody for taking a brand new job. Nonetheless, Sparkle Pop claims that they have been all employed to spill helpful commerce secrets and techniques.
BUT THAT’S NOT ALL. Sparkle Pop alleges that the brand new Alliance hires have been set on stealing away Amazon enterprise from “Sparkle Pop/Diamond.” Joe Lunday, who was Director of E-commerce Gross sales at Diamond, was employed by Alliance as Director of Collectible Gross sales, and in response to Sparkle Pop, he reached out on to Amazon.
[Lunday] reached out to his Amazon rep on his final day at Diamond Comedian on Could 30, 2025, to inform the Amazon rep that: (a) he would staying in the identical business as Diamond Comedian at his subsequent job at Alliance; (b) he could be working at Alliance in the same position as his position at Diamond; (c) Alliance could be trying to construct out their collectible program; (d) all Diamond Comedian staff have been leaping ship; and (e) going ahead, Amazon can buy the objects they’d been shopping for from Diamond Comedian from Alliance as a substitute.
The Amazon consultant confirmed to Joel Weinshanker, a principal of Sparkle Pop, that Mr. Lunday advised him that each one: (a) Diamond Comedian staff have been leaping ship; and (b) going ahead, Amazon can buy the objects they’d been shopping for from Diamond Comedian from Alliance as a substitute.
As soon as once more, it’s not fully clear what Amazon buys from Diamond as of late, as they’re now not promoting Marvel, DC, Picture, Growth, Darkish Horse, IDW, or most different publishers. Perhaps a ton of Dynamite comics? Toys? Video games undergo Common/”Diamond” Video games. No matter it’s, it’s substantial sufficient to trigger a lawsuit.
Anyway, that’s all I acquired for now.
One remaining word: I discover using the time period “Diamond Comedian” all through this criticism extremely amusing. It’s true that the precise identify of Steve Geppi’s enterprise is Diamond Comedian Distribution, so it’s an correct shortening. However I don’t suppose anybody has ever stated the time period “Diamond Comedian” aloud. Attempt it your self. It’s bizarre.
However not as bizarre as the entire equipment and kaboodle of this mess.
I’ll have some extra reportage based mostly on conversations with retailers and publishers that I had at TCAF within the coming days.
