In September of 2025, Diamond launched nearly 3 dozen individual lawsuits against publishers regarding consigned inventory that Diamond still possessed. In short, Diamond wanted to sell the goods to help pay back debts and the publishers wanted their inventory back. That fight has dragged out for over a year with settlements finally being approved this past week.

One of the publishers sued was Udon Entertainment and overall, their adversary proceeding has been rather quiet with just 10 total documents in the year’s time.

What’s more entertaining, even with a settlement approved, the adversary proceeding could be dismissed due to Diamond not following the correct procedures. We’re expecting all of these adversary proceedings to eventually be dismissed officially with settlements approved.

In a filing from Friday:

It appearing that the Plaintiff has not served the summons and complaint in this adversary proceeding within seven (7) days after issuance of the summons as required by Federal Bankruptcy Rule 7004(e) and/or the Plaintiff has not filed proof of service within the time during which the person served must respond to the process as required by Local Bankruptcy Rule 7004−1,

NOTICE IS HEREBY GIVEN that unless good cause be shown to the Court fourteen (14) days from the date of this notice why service was not made as required by Federal Bankruptcy Rule 7004(e) and/or proof of service was not filed as required by Local Bankruptcy Rule 7004−1, this adversary proceeding shall be dismissed without prejudice without further notice or a hearing.

Remember kids… even lawyers forget to file paperwork.

Check out the full filing below: