Defendant Alliance Entertainment has filed a new motion with the court to dismiss the complaint, with prejudice, against it by Sparkle Pop. You can check out our dashboard with all of the major events including a timeline. Alliance had previously filed a similar motion in July, but that was denied. Sparkle Pop amended their complaint towards the end of July.

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 asked 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.

In Alliance’s motion their attempt at dismissal revolves around:

• Sparkle Pop lacks standing to enforce the terms of the contract that Alliance had signed to take part in the bid for Diamond’s assets
• Sparkle Pop’s complaint isn’t specific enough and doesn’t go into enough details about who committed which wrong.
• Sparkle Pop doesn’t establish it’s the owner of any trade secrets it claims Alliance stole.
• Sparkle Pop fails to allege that Alliance acquired trade secrets by improper means.
• Sparkle Pop doesn’t identify any valid trade secrets and the “trade secrets” they mention are out there in the public.
• Sparkle Pop didn’t protect its trade secrets.
• Sparkle Pop fails to state a claim under the MUTSA, a claim for Tortious Interference, or violation of the NDA

Short version, Sparkle Pop wasn’t specific enough…

You can read the full motion below: