Diamond and AfterShock Dismiss Their Claims

In a filing on December 12, Diamond and Aftershock has dismissed their claims and counterclaims against each other. The lawsuit was launched September 9 and concerns the consigned goods of AfterShock’s that Diamond still has. Diamond has been fighting to be able to sell the consigned inventory and pay down its debt in its chapter 11 process.

In a hearing, Diamond had a stay put on its ability to sell the goods and was given the option to submit claims against individual publishers. Diamond then launched 32 different cases against individual publishers fighting over goods.

On December 5, AfterShock filed a counterclaim against Diamond asking for a judgement that the stock is AfterShock’s and that there’s issues with what Diamond is attempting as AfterShock is going through their own chapter 11 process which has its own stay in place.

AfterShock was looking to be awarded damages, including attorneys’ fees, punitive damages, and other relief the Court deems “just and proper.”

Details of the dismissal have not be released by the two companies.

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A deficiency in the above motion was filed today as it doesn’t meet all of the process needed to file it but it’ll likely be corrected by the due date to do so.

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