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Publishers Get the Win When it comes to Consigned Goods Inspection with Sparkle Pop

Posted on October 31, 2026 by Brett Leave a comment

Two settlements with publishers in the fight over consigned goods and the Diamond chapter 7 case were settled this past week. One settlement was with 13 publishers and the other settlement was with 15 publishers. It was a big step in wrapping up the situation that has dragged out for over a year. Part of what led to one of those settlements was Sparkle Pop dropping its objection.

Sparkle Pop is one of the companies that purchased assets of Diamond’s and currently houses the consigned goods that are at the center of the dispute. Sparkle Pop had objected to the want of publishers to do an inspection over the inventory being help and generally not being included in the settlement negotiations.

On Friday, the “motion to compel discovery” was approved for a dozen publishers involved. Ablaze, Avatar Press, Zenescope, Paizo, Living the Line, Herman & Geer Communications, Green Ronin Publishing, Fantagraphics, BOOM!, Battle Quest Comics, American Mythology Productions, and Action Lab Entertainment all had their motion to “compel discovery” approved by the court.

The motion is interesting with some new nuggets of information:

The inspection of the inventory was performed on October 26 and October 27
Each day the inspection lasted for eight hours
It was performed by Shawn Hamrick with an assistant. Hamrick worked for Diamond Comic Distributors for almost 32 years and was the Vice President of Operations & Chief Logistics Officer.
The plaintiff, aka publishers, are responsible for the fees and costs.
Sparkle Pop was able to accompany Hamrick and the assistant during the inspection.
It’s a visual inspection and identification of the consigned inventory, but Hamrick and the assistant weren’t able to move any physical items. So, we’re not sure how you really dive in and count and confirm the inventory without being able to do so.
Sparkle Pop will pay any fees it incurs during the process (so their staff is on their dime).

So, based on all of this, it sounds like the inspection of the inventory was completed earlier this week, before either settlement was approved… It’s an interesting twist and might explain why Sparkle Pop dropped their entire objection to the settlement. But, there are a lot of different scenarios that we aren’t privy to regarding the specific details of this side quest. If nothing else, it confirms a lot of negotiations occurring behind the scenes that aren’t being made public.

Check out the full court document below:

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Discovery Plan in Diamond vs. Comic and Game Publishers Gets Approved

Posted on September 23, 2026 by Brett

We brought the news in early March that there was some movement in the court case between Diamond and numerous publishers. The various parties and Diamond met on February 26 and March 3-4 in an attempt to find a resolution, the nature of the claims and defenses, to arrange disclosures, and propose a discovery plan. On March 4, there was a filing hashing out the plan for discovery.

Discovery is the process where documents related to the case are handed over to the parties involved for them to go through as far as evidence. This can be emails, text messages, Slack messages, and can easily go into the millions of documents.

The issue is who owns the consigned goods that are still being held by Diamond. Zenescope, Action Lab Entertainment, Ablaze, American Mythology, Battle Quest Comics, Paizo, Living the Line, Herman & Geer Communications, and Green Ronin Publishing are all fighting to get their inventory back. Diamond wants to keep the inventory to be able to sell it off to pay creditors. JPMorgan Chase Bank wants Diamond to sell off the inventory so it can get paid back by Diamond. Sparkle Pop is involved because it has sold off some of the inventory when it wasn’t supposed to and currently is holding the physical product in a warehouse it controls.

While this has been ordered, there’s now multiple settlements making their way through the courts between Diamond, publishers, and Sparkle Pop (who is currently housing the consigned goods). One of those agreements is being litigated and the other was just announced. The one being litigated involves the publishers and this discovery timeline.

An updated timeline has been approved by the court:

Discovery Requests. The Parties shall serve all additional document requests, interrogatories, and requests for admissions on or before October 1, 2026.
Agree on ESI Search Terms. The Parties will make reasonable efforts to agree on ESI Search Terms on or before October 15, 2026.
Substantial Document Production Completion Date. The Parties expect to have document production substantially completed by November 15, 2026.
Fact Discovery Cut Off. The Parties have agreed that, except for Rule 26(a)(1) disclosures, all fact discovery in this case shall be initiated so that it will be completed on or before January 15, 2027. The Parties have agreed that they may take fact depositions at any time prior to the expiration of the fact discovery deadline.
Privilege Logs. Privilege logs shall be produced in accordance with the Federal Rules of Civil Procedure so as to be completed within five (5) business days of the related document production. Privileged communications occurring after June 15, 2025, need not be included on a privilege log.
Expert Initial Disclosures. The identity of expert witness and subject matter of expected testimony, per Rule 26(a)(2)(A) and 26(a)(2)(C)(i), shall be disclosed on February 1, 2027. Any rebuttal experts, and subject matter of expected testimony, shall be disclosed on February 8, 2027.
Expert Reports and Expert Discovery Cut Off. Expert reports and all other information required by Rule 26(a)(2)(B), along with any documents or information considered by the expert, shall be exchanged on March 1, 2027. Rebuttal expert reports and all other information required by Rule 26(a)(2)(B), along with any documents or information considered by the expert, shall be exchanged on March 15, 2027. All expert discovery shall be completed by April 15, 2027.

Based on all of those dates, we won’t see a court case before 2027.

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Publishers to Sparkle Pop… What Consigned Goods are You Storing!? The Diamond Chapter 7 Drama Continues

Posted on August 25, 2026 by Brett

While some think the drama concerning Diamond Comic Distributor‘s bankruptcy is wrapping up or over, there’s still a long way to go before this epic story ends. In early August, (old) Diamond Comic Distributors and its trustee Morgan W. Fisher announced a resolution and compromise with 15 publishers regarding consigned goods being held by Diamond and stored in a warehouse by Sparkle Pop.

(Old) Diamond had declared Chapter 11 and eventually Chapter 7 and in its possession was consigned goods from numerous publishers valued in the millions. There has been a fight for over a year where a little over 30 publishers had been fighting to get those consigned goods back. Diamond had been claiming it has a right to them and was going to sell them to pay off their debt. Sparkle Pop had purchased some of the assets of Diamond in the bankruptcy and that included taking over the warehouse where that product was being stored.

As part of the settlement, the 15 publishers can get their goods back and have to pay for the picking and packing of the inventory.

But… what the hell does Sparkle Pop still have in their possession!?

That seems to be at the heart of multiple motions today asking the court to help figure out what inventory remains in the warehouse.

In the motion, the publishers state that:

Initially, Sparkle Pop reported sales only of inventory received after May 15, 2025.
Even after Sparkle Pop reported sales of inventory received both before and after May 15, 2025, Sparkle Pop has not updated its court reporting with regard to inventory sales after October 2025.
With regard to sales reported to this Court through October 2025, Sparkle Pop apparently applied a flat return rate as to each consignor. See, e.g., Sparkle Pop Report, attached hereto as Exhibit 1, illustrating the application of a flat return rate, and summary from Sparkle Pop, attached hereto as Exhibit 2. Sparkle Pop has never provided any detail as to what products were actually returned. See, Affidavit of Sparkle Pop Agent attached as Exhibit 3. Furthermore, some of the inventory sold was not returnable, and consignors have reported that they did not receive returned product (supporting the consignors’ allegation that Sparkle has reported returns that never, in fact, occurred).
Sparkle Pop also may be continuing to sell inventory from the Warehouse. As recently as early 2026, one of the consignors received a report showing that inventory of another consignor being processed and removed from the Warehouse, despite Sparkle’s consensual agreement that any sales are prohibited by the automatic stay. See E-Mail from Drawn and Quarterly Books, Inc. attached as Exhibit 4.

The publishers have asked for the court to compel an inspection of the warehouse to audit the product that remains located there. They also want to use that inspection to corroborate the reports provided by Sparkle Pop. But, also raised is a “claim for conversion,” basically, is there further action publishers need to take because of actions by Sparkle Pop.

In July, the publishers submitted a subpoena to “Produce Documents, Information, or Objects or to Permit Inspection of Premises in a Bankruptcy Case” and in late July Sparkle Pop objected to that and the inspection. This created an unresolved dispute.

Sparkle Pop has made demands for the inspection to go through, which the publishers object to:

Sparkle Pop’s sole right to designate the party permitted to conduct the inspection of the Warehouse and its requirement that any assistants be approved in advance;
a requirement that the Trustee and Sparkle Pop enter into an agreement concerning payment of back rent owed at the Warehouse; and
a requirement that the Ad Hoc Committee of Consignors solely bear Sparkle Pop’s claimed cost of the inspection, which Sparkle Pop currently quotes at $639.94 per hour – which fee includes an unexplained “thirty percent markup” and exorbitant compensation for what should be a single employee who accompanies the inspector. Originally the fee requested was $1,000 per hour and inexplicably included charges for Sparkle Pop’s tax and insurance payments for the Warehouse.

The publishers thinks those demands are unreasonable and unwilling to pay for the inspection, though they are being flexible in that if there’s a particular party Sparkle Pop doesn’t want in the warehouse, that can be accommodated. They refuse to give Sparkle Pop unilateral control over the process. They also point out that the payment for back rent owed is between Sparkle Pop and (old) Diamond, not the publishers.

The publishers are asking for the court to compel an inspection within 30 days of the service of the motion, that the individual committing the inspection be agreed upon, and Sparkle Pop will bear its own costs in related to the inspection.

The publishers that are part of this motion include 12 of the 15 (so far) that settled/compromised:

Ablaze
Action Lab
American Mythology
Avatar Press

Battle Quest Comics
BOOM! Studios
Fantagraphics
Green Ronin Publishing

Hermes Press
Living the Line
Paizo
Zenescope

You can read the filings below which also includes a look behind the curtain as far as inventory and discussion for this publisher. The overall motion is the same for each publisher while the inventory changes for each.

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Indie Comics United with a Super Humble Bundle of Awesome Stuff to support the CBLDF!

Posted on March 18, 2026 by Graphic Policy Team

Humble Bundle has partnered with a bunch of indie publishers: Ablaze, Action Lab, American Mythology Productions, Battle Quest Comics, Drawn & Quarterly, Dynamite Entertainment, Fantagraphics Books, Heavy Metal, Living The Line Books, Valiant Entertainment, Zenescope, Hermes Press, and Green Ronin Publishing to support their shared goal of encouraging bold ideas and creativity in their creators and readers, bringing you some of their most beloved titles, like quirky time travel graphic novel There’s No Time Like the Present, intimate queer family drama Stone Fruit, fairy tale reimagining Grimm Tales of Terror, sci-fi epic Moonray, and the newly revamped Heavy Metal! You choose what you pay for all of these and more, and every purchase supports the Comic Book Legal Defense Fund!

The Indie Comics United: A Super Bundle of Awesome Stuff has a retail value of $1,329 and you can get all 60 items for just $18.

Comics

Indie Comics United with a Super Humble Bundle of Awesome Stuff to support the CBLDF!

Posted on March 14, 2026 by Graphic Policy Team

The Indie Comics United: A Super Bundle of Awesome Stuff has a retail value of $1,329 and you can get all 60 items for just $18.

Comics

Discovery Plan in Diamond vs. Publishers Gets an Updated Timeline

Posted on March 13, 2026 by Brett

An updated timeline has been released as far as the discovery plan with some slight shifts from the previous released plan.

Electronic Discovery. The parties have reviewed Rule 26(f), which, inter alia, addresses preservation of discoverable information, discovery of electronically stored information, and claims of privilege or work product protection. The parties have reviewed the Principles for the Discovery of Electronically Stored Information (“ESI”) in Civil Cases (as set forth by the United States District Court for the District of Maryland at https://www.mdd.uscourts.gov/sites/mdd/files/ESI-Principles.pdf), and will discuss the ESI Principles to agree on voluntary compliance, as appropriate. The Principal 2.03 Conference will occur on or before April 3, 2026. Documents and ESI shall be produced electronically via a mutually agreeable method such as an FTP site, and assearchable Static Images. This production protocol may be modified by mutual agreement or by court order.
Rule 26 Disclosures. Unless otherwise agreed to by the parties, the parties shall make their initial disclosures pursuant to Federal Rule of Civil Procedure 26(a)(1) on or before March 23, 2026.
Discovery. The Parties have agreed that they may propound document requests, interrogatories, and requests for admissions pursuant to the Federal Rules of Civil Procedure and the Local Rules of this Court, which response shall be made within 30 days of service. Unless otherwise ordered by the Court or agreed to by parties, the limitations on discovery set forth in the Federal Rules of Civil Procedure shall be strictly observed.
(a) Discovery Requests. The Parties shall serve all initial document requests, interrogatories, and requests for admissions on or before April 9, 2026.
(b) Agree on ESI Search Terms. The Parties will make reasonable efforts to agree on ESI Search Terms on or before April 23, 2026.
(c) Substantial Document Production Completion Date. The Parties expect to have document production substantially completed by June 4, 2026.
(d) Fact Discovery Cut Off. The Parties have agreed that, except for Rule 26(a)(1) disclosures, all fact discovery in this case shall be initiated so that it will be completed on or before July 31, 2026. The Parties have agreed that they may take fact depositions at any time prior to the expiration of the fact discovery deadline.
(e) Privilege Logs. Privilege logs shall be produced in accordance with the Federal Rules of Civil Procedure so as to be completed within five (5) business days of the related document production. Privileged communications occurring after April 29, 2025, need not be included on a privilege log.
(f) Expert Initial Disclosures. The identify of expert witness and subject matter of expected testimony, per Rule 26(a)(2)(A) and 26(a)(2)(C)(i), shall be disclosed on August 7, 2026. Any rebuttal experts, and subject matter of expected testimony, shall be disclosed on August 17, 2026.
(g) Expert Reports and Expert Discovery Cut Off. Expert reports and all other information required by Rule 26(a)(2)(B), along with any documents or information considered by the expert, shall be exchanged on September 8, 2026. Rebuttal expert reports and all other information required by Rule 26(a)(2)(B), along with any documents or information considered by the expert, shall be exchanged on September 29, 2026. All expert discovery shall be completed by October 20, 2026.
Protective Orders. The parties will submit a confidentiality order to the Court for approval on or before April 3, 2026.
Case Dispositive Motions. Any dispositive motions must be filed on or before November 3, 2026. Answering briefs in opposition thereto are due seventeen (17) days later (November 20, 2026), with reply briefs to be filed twelve (12) days after the filing of any answering briefs (December 2, 2026).
Joinder of Other Parties and Amendment of Pleadings. All motions to join other parties, and to amend or supplement the pleadings, shall be filed on or before June 19, 2026.
Pretrial Order. If this adversary proceeding cannot be resolved on dispositive motions, the Parties have agreed to file a Joint Pretrial Report within thirty (30) days of the Court’s ruling on dispositive motions.
Length of Trial. The Parties estimate that the time required to try this adversary proceeding will be 3-4 days.
Other Matters. There are no other matters that need to be raised at this time.

Based on all of those dates, we likely won’t see a court case before 2027.

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Diamond Chapter 11

Indie Comics United with a Super Humble Bundle of Awesome Stuff to support the CBLDF!

Posted on February 20, 2026 by Graphic Policy Team

Indie comics and their publishers are having a moment like never before, and what better way to celebrate this achievement than by putting together a bundle of the best of the best? And even better than that?? You can get all of these comics delivered right to your inbox at the low price of your choice!! Humble Bundle has partnered with a bunch of indie publishers: Ablaze, Action Lab, American Mythology Productions, Battle Quest Comics, Drawn & Quarterly, Dynamite Entertainment, Fantagraphics Books, Heavy Metal, Living The Line Books, Valiant Entertainment, Zenescope, Hermes Press, and Green Ronin Publishing to support their shared goal of encouraging bold ideas and creativity in their creators and readers, bringing you some of their most beloved titles, like quirky time travel graphic novel There’s No Time Like the Present, intimate queer family drama Stone Fruit, fairy tale reimagining Grimm Tales of Terror, sci-fi epic Moonray, and the newly revamped Heavy Metal! You choose what you pay for all of these and more, and every purchase supports the Comic Book Legal Defense Fund!

The Indie Comics United: A Super Bundle of Awesome Stuff has a retail value of $1,329 and you can get all 60 items for just $18.

Comics

The Ad Hoc Committee Drops a Motion asking Out of Diamond, Ad Populum, and Universal Distribution, Who’s Actually Selling the Consignment Merchandise?

Posted on August 2, 2025 by Brett

There’s been a lot of unanswered questions when it comes to Diamond‘s chapter 11 filing and the purchase of its assets by Universal Distribution and Ad Populum/Sparkle Pop. The Ad Hoc Committee of Consignors has submitted a motion that lifts the veil a bit and gives clues as to some of those answers.

The Ad Hoc Committee of Consignors is a group of creditors, aka publishers, impacted by Diamond’s chapter 11 and also Diamond’s motion to try to sell consignment goods to help pay back its debts. The committee includes Ablaze, American Mythology, Avatar Press, Battle Quest, Drawn & Quarterly, Fantagraphics, Green Ronin, Hermes Press, Living the Line, Paizo, Udon Entertainment, and Zenescope.

At the heart of this motion is the question as to whether anyone can legally sell goods still held by Diamond and if Ad Populum or Universal Distribution properly continued any of the previous Diamond contracts.

In short, who the hell are currently selling and profiting from the comics and games being “sold by Diamond”?

Sit back, because this is a doozy of a filing and we’re going to try to break it down with bullet points for ease and the really interesting parts are in bold…

Diamond filed its bankruptcy on January 14, 2025 and on January 21 put in a motion to sell its assets
On May 1, Ad Populum/Sparkle Pop and Universal Distribution won the bidding prosses for the assets
On June 10, Diamond filed a notice of the sales closing with each closed in mid-May
Goods held on consignment by Diamond were excluded from the inventory sold to Ad Populum/Sparkle Pop and Universal Distribution
Spark Pop was given 20 business days after closing to decide what contracts it would continue and that includes the contracts (consignors) between Diamond and the publishers
Diamond nor Ad Populum/Sparkle Pop filed motions to have the “Consignors’ Contracts assumed and assigned.” This ended in early June 2025
Universal Distribution did include assumed contracts in its sale closing which was filed a month after closing. That included Green Ronin Publishing and a distribution agreement with Paizo. But, the purchase agreement and sale order didn’t identify any assigned contracts, so there’s some paperwork issues there.
On June 25, 2025, Diamond filed a motion to sell the consigned inventory it has.
After, there were a lot of objections to that consignment sale.
On April 17, Titan Publishing Group filed an emergency motion to compel Diamond to assume or reject its distribution agreement with Titan
On May 16, 2025, Diamond filed a motion objecting to Titan’s motion.

Got all that? In short, no one has filed the paperwork properly to assume or reject the contracts that existed between Diamond and the publishers.

There’s more interesting details…

On May 27, an email was sent to publishers stating the Ad Populum/Sparkle Pop and Universal Distribution were responsible for all sales activity after May 16 and Ad Populum/Sparkle Pop’s Diamond was a new entity. The Ad Hoc’s motion states that the email sent misled the publishers that the “Asset Sale to Sparke Pop was actually a sale of ownership, because it indicated that Diamond continued to operate under the ownership of a new buyer.”

What’s interesting is that that email says Ad Populum is responsible for new stock, but never took over any stock and that the legacy consignment stock continued to be sold… by someone.

And that’s what is at the heart of this motion, who is selling the stock that Ad Populum/Sparkle Pop and Universal didn’t purchase. Diamond isn’t providing information concerning that.

The May E-Mail confirms that the Stock continued to be sold by someone after the Sparkle Pop and/or UDL sales closed, but it is unclear who is selling the Stock. The Debtor has confirmed that it has not sold stock after May 15, 2025, but has declined to voluntarily provide any information to the Consignors as to who sold Stock after May 15, 2025, which Stock was sold, or what payments remain due and owing to the Consignors on account of
the sales. The Debtors have declined to voluntarily provide any information to the Consignors as to how any party other than the Diamond Distributor Debtor could sell Stock without a properly assumed and assigned agreement to do so.

The motion has amounts that are owned to each of the publishers. The 12 publishers are owed at least $555,971.84. But, that amount is unknown and likely higher since Diamond isn’t providing up-to-date reporting as to what’s sold or collected, so that amount may be higher.

The motion goes on further to poke holes in Diamond’s plan to sell the consignment stock and that there are outstanding obligations.

It’s asking for the status of these contracts to be determined and done so soon and the consignors what the contracts to be terminated when if Diamond rejects the contracts.

They’re also conducting discovery to find out who sold the stock after the May 15 sale to Ad Populum/Sparkle Pop.

Buckle up, this is going to get very interesting!

Read all of the filings below:

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Diamond Chapter 11

Who is the Ad Hoc Committee in the Diamond Bankruptcy Case?

Posted on July 26, 2025 by Brett

During the Diamond Chapter 11 bankruptcy case, there’s been an “Ad Hoc Committee” that has represented multiple creditors impacted, the creditors being publishers and others Diamond owes money to. But, who makes up the “Ad Hoc Committee?”

Formed on or about July 11, the group is represented by YVS Law, LLC and with a new filing, we now know who is represented answering more questions as to how publishers are responding to the legal proceeding and checking off 11 more who are involved in the proceedings.

The “Ad Hoc Committee” consists of:

Ablaze LLC
American Mythology Productions, LLC
Avatar Press, Inc.
Drawn & Quarterly Books Inc.,
Fantagraphics Books, Inc.
Green Ronin Publishing LLC
Herman & Geer Communications, Inc. dba Hermes Press
Living the Line LLC
Paizo Inc.
UDON Entertainment Inc.
Zenescope Entertainment Inc.

Check out the filing below:

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Diamond Chapter 11

Green Ronin Publishing launches a GoFundMe to Take on Diamond

Posted on July 11, 2025 by Brett

On June 25, 2025, Diamond Comic Distributors submitted a motion for the “sale or other disposition of consigned inventory.” After Diamond’s sale of the majority of its assets to Universal Distribution and Ad Populum/Sparkle Pop, (old) Diamond still has a “significant inventory” that was sent on a consignment basis.

(Old) Diamond is claiming the consignors (the sellers) haven’t followed the legal steps to establish a superior claim to their inventory. In short, the publishers (owners of the product) haven’t done what’s require by law to protect their ownership rights. So now, (old) Diamond has to do something with all of that inventory.

So, (old) Diamond submitted a motion to approve their plan to market, sell, or dispose of the inventory to “minimize costs and maximize recoveries” and generate the “best result for the estates.” It is assumed that money raised from the sale would go towards paying off money owed to JPMorgan Chase Bank which has provided loans to the company throughout the Chapter 11 process. So, instead of money going towards publishers, it’d likely go towards a bank. Yes, product publishers paid to print would go to help Diamond and publisher’s would possibly receive nothing.

Those who want to object to the motion have until July 16, 2025 to do so in writing and file it with the Clerk of the Bankruptcy Court (Objections to the Motion must be in writing and filed with the Clerk of the Bankruptcy Court, 101 West Lombard Street, Suite 8530, Baltimore, Maryland 21201, on or before July 16, 2025; and be served so as to be received on or before the Objection Deadline by the undersigned counsel for the Debtors.). The hearing on the motion is being held on July 21.

So far, TwoMorrows Publishing, Magma Comix, and Graphitti Designs have submitted objections to the plan. But, legal fights require money.

Green Ronin Publishing has launched a GoFundMe to help with their legal fight. From their fundraising page:

This is a dire financial threat to our company, not just today, but well into the future. We must secure legal representation immediately before the deadline to do so passes.

While there is no “good” time for someone to steal hundreds of thousands of dollars worth of your property to sell for the benefit of their biggest creditors, it is especially challenging given that Gen Con is weeks away. Gen Con is not just a convention for us, it’s our most important annual event for connecting with TTRPG enthusiasts, our business partners, and our community, and this year is no exception. We’re launching new products and have already committed significant funds to cover everything from booth space, travel (flights, rooms), and most critically, the production of new books and merchandise specifically for the show floor.

Diamond’s bankruptcy and this legal action also mean that Green Ronin has lost its book trade distributor. We are looking for a new partner, but that will take some time. Book trade sales of literary licenses, currently The Fifth Season and The Expanse, are a key part of our strategies for those games. This is especially bad timing for The Fifth Season RPG because we recently received final approvals from N.K. Jemisin and the game is ready to go to print.

We simply don’t have the cash on hand to do all of this, pay for an attorney, or participate in any collective legal actions with other publishers in our same position.

The banks are stopping at nothing to wring every last dollar out of Diamond – including taking several hundreds of thousands of dollars worth of Green Ronin product to sell in order to pay Diamond’s debts – but they can’t do that, and we’ve got a legal agreement that says as much. Now, we just need to secure a law firm to represent us in the courts.

The funds raised through this campaign will be used directly to cover the escalating legal fees associated with fighting Diamond’s claim in bankruptcy court. This includes attorney retainers, court filing fees, and the costs of pursuing every possible avenue to recover our inventory and protect Green Ronin’s assets.

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