In early July, defendant Alliance Entertainment filed a motion with the court to dismiss the complaint, with prejudice, against it by Sparkle Pop. U.S. Bankruptcy Judge David E. Rice has denied that motion.

In January 2025, Diamond Comic Distributors filed for Chapter 11 bankruptcy. In the months since, the drama that has come out due to the proceedings has been worthy of an HBO miniseries with bids made, bids rejected, last minute switches, and now accusations of NDAs broken and corporate espionage.

On June 9, 2025, Sparkle Pop, one of the winners of Diamond’s assets, filed a complaint against Alliance Entertainment and asking for a temporary restraining order. Alliance Entertainment was the original winning bidder for Diamond’s assets during the bankruptcy but pulled its bid accusing Diamond and its representatives of fraud. That legal case was ongoing as of this initial launch.

Sparkle Pop has accused Alliance of breaking its NDAs, poaching Diamond employees, and stealing corporate secrets it learned during its bid for Diamond.

You can check out our dashboard with all of the major events including a timeline.