The drama just ramped up to 11 when it comes to Diamond’s Chapter 11 process and its fallout. In a surprise, Spark Pop, one of the winners of Diamond’s assets, has filed a motion against Alliance Entertainment for “disregard of binding non-disclosure and non-solicitation obligations and its theft of valuable of trade secrets.”

For those who might not remember, Alliance Entertainment originally won the bid for Diamond’s assets, then Diamond went with Universal Distribution and Ad Populum (Sparkle Pop’s parent company), then back to Alliance. Then Alliance ended their bid claiming fraud by Diamond and those involved. Eventually Universal Distribution and Ad Populum/Sparkle Pop won the bid.

Sparkle Pop accuses Alliance for abusing the bankruptcy process and gaining inside access to Diamond’s “employees, trade secrets, and proprietary information, all while delaying the sale of assets to legitimate purchasers.” Alliance recently hired seven Diamond employees which Sparkle Pop calls “poaching” and claiming it has “hobbled” its business. It further claims Alliance has “exploited its inside knowledge of Diamond Comic’s confidential information to usurp key distribution relationships with vendors and customers, further undermining the business.”

Alliance has signed a non-disclosure and non-solicitation agreement that bars the accused conduct according to the motion.

There’s lots of details about violations of NDAs, employee’s confidentially obligations, and that Alliance is attempting to poach Amazon away from Diamond. Former Diamond employees named include Joe Lunday who called Amazon on his last day to tell them of his switching of employers. Diamond Comic’s law firm Saul Ewing has sent a cease-and-desist letter to Alliance on behalf of Diamond.

The motion claims the following counts:

1. Violation of the DTSA
2. Violation of the Maryland Uniform Trade Secrets Act
3. Tortious Interference with Employment Contracts
4. Tortious Interference with the APA and TSA
5. Injunctive Relief

Sparkle Pop is seeking damages to be proved during trial, a temporary restraining order, preliminary injunction and permanent injunction that would prevent further soliciting Diamond employees or any business relationship with Amazon, and using any Diamond trade secrets.

Read the full the motion below: