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.

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

While Diamond’s now chapter 7 is nearing an end, the lawsuit between Sparkle Pop and Alliance Entertainment continues.

A pretrial conference has been set for March 11, 2027 at 10am. On the agenda are:

50 − Amended Complaint by Ellen E. Dew on behalf of SPARKLE POP LLC, a Delaware limited liability company
against ALLIANCE ENTERTAINMENT HOLDING CORPORATION, a Delaware corporation, ALLIANCE
ENTERTAINMENT, LLC, a Delaware limited liability company. (related document(s)1 Complaint filed by Plaintiff
SPARKLE POP LLC, a Delaware limited liability company). (Dew, Ellen)

You can read more about the amended complaint.

75 − Answer to Complaint − Defendants’ Answer and Affirmative Defenses to Amended Complaint Filed by
ALLIANCE ENTERTAINMENT HOLDING CORPORATION, a Delaware corporation, ALLIANCE
ENTERTAINMENT, LLC, a Delaware limited liability company. (Grasso, Jonathan)

Read more about that here.