A settlement was filed today between Image Comics and Diamond Comic Distributors concerning the consigned inventory Diamond still has and has motioned the court to sell. On July 18, Image filed an objection to Diamond’s plan which is currently at the center of a court hearing that began yesterday and is going into at least today.

That inventory is currently sitting in Diamond’s old warehouse which has been taken over by Sparkle Pop which is housing it for (old) Diamond.

In the document it states that:

1. Image has provided Diamond with a list of the inventory that will be returned to Image if the agreement is approved;
2. Image will provide Diamond and Sparkle Pop with proof of insurance and indemnification;
3. Image will not be respnsible for the costs involved with the returning like picking it up, packing it, and storage costs but will pay for removing it from the warehouse;
4. Diamond and Sparkle Pop can’t do anything with the inventory beyond returning it;
5. This is a big one… Diamond has the rights to any proceeds from Sparkle Pop’s unauthorized sales of the consigned inventory. (Old) Diamond has all the claims and causes of action that Image currently has against Sparkle Pop. It was recently revealed that Sparkle Pop was selling consigned inventory without purchasing it. The fact this is included would lean towards Diamond telling the truth about this.
6. Image drops any claims and any back and forth between the two is over.

So, Image gets its inventory back and all matters between Image and Diamond are dopped. But, Diamond not gets to go after Sparkle Pop for selling product they shouldn’t have. Is that another lawsuit getting launched as part of Diamond’s Chapter 11?

The deal needs to be approved by the court.