Tag Archives: Herman & Geer Communications

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

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

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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Discovery Plan in Diamond vs. Publishers Gets an Updated Timeline

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, the process where documents pertaining to the case are handed over.

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.

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

  1. 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.
  2. 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.
  3. 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.
  4. Protective Orders. The parties will submit a confidentiality order to the Court for approval on or before April 3, 2026.
  5. 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).
  6. 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.
  7. 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.
  8. Length of Trial. The Parties estimate that the time required to try this adversary proceeding will be 3-4 days.
  9. 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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