Diamond Chapter 11 Lawsuit Sidequests Get Delayed Due to Chapter 7
Diamond‘s chapter 11 case turned into chapter 7 at the end of 2025 and is now moving ahead with the appointment of individuals to manage the process. A question has been out there, how does that impact the numerous lawsuits that have spun out of the chapter 11. There’s lawsuits concerning inventory that (old) Diamond claims it has a right to but is being managed by (new) Diamond, aka Sparkle Pop, and of course (old) Diamond’s loan lender JPMorgan Chase Bank wants their money, so they have a claim too. It’s a lot to keep track of, dozens of separate cases at this point with most being rather quiet but every so often dust gets kicked up. Today was one of those days.
So far today, BOOM! Entertainment, Living the Line, Herman & Greer, Green Ronin Publishing, Fantagraphics, Ablaze, Zenescope, Action Lab Entertainment, American Mythology, Avatar Press, Battle Quest Comics, and Paizo Inc. all have had stipulations released delaying action in their cases.
Each are fighting over that “consignment stock” and the stipulations extend the time for responses. In October, Diamond launched cases against individual publishers over that stock.
In December, Diamond’s chapter 11 was converted to chapter 7 with a stay in place until February 16, 2026.
So, when it comes to all of these side lawsuits and fights, responses are now delayed until that date, February 16. So, whatever comes next, we have a month before we’ll find out.
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