Tag Archives: living the line

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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CRWN Studios Expands Into Distribution

CRWN Studios

CRWN Studios, a logistics and publishing services company based in Portland, Oregon, is expanding its operations to include distribution. After more than a decade supporting independent publishers, artists, and creators with manufacturing, crowdfunding fulfillment, and e-commerce infrastructure, CRWN is now bringing that same capability to publishers seeking wider retail reach.

This expansion positions CRWN as a full-service partner for publishers and independent creators who want to enter both the U.S. and U.K. trade markets while retaining control of their audience, catalog, and financial terms.

As part of this move, CRWN Studios has hired Terry Helman (formerly of Diamond Book Distributors), who joins as Director of Sales. Helman will oversee sales strategy and publisher relations, drawing on decades of experience with graphic novels, comics, and tabletop/RPG categories.

Several former Diamond Book Distributors clients including Living the LineGoodman GamesPegamoose Press, and Lionwing Publishing have already signed on with CRWN for distribution, alongside publishers who previously partnered with CRWN for direct fulfillment, such as Dragons & BeastiesArchmage StudiosRoll for Combat, and independent creators Marie EngerSimon RoyDon AustinTavis Maiden, and many more to soon be announced.

CRWN Studios has already begun servicing retail and wholesale accounts across the U.S. and U.K., with support for all major book retailers and a new direct-order portal for comic shops, bookstores, hobby retailers, and specialty stores. Warehousing, catalog management, fulfillment, and trade logistics are all operated from CRWN’s Portland facility.

As part of onboarding, new distribution clients are integrated into Firebrand Technologies for title management and ONIX data feeds, with review copies available via Edelweiss, and print and digital catalogs launching in 2026.

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

Diamond Comic Distributors

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

Diamond Comic Distributors

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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Living the Line announces a new manga imprint, Smudge

Publisher Living the Line has unveiled a new publishing imprint, Smudge. Smudge is a line of pulp, horror, and dark mystery manga, curated and translated into English by award-winning historian Ryan Holmberg.

Smudge is set to debut in Spring 2024 with cult classic Her Frankenstein headlining the inaugural issue. Originally published in 1986, Kawashima Norikazu’s Her Frankenstein marks the bizarre and sadomasochistic finale to a cult era in Japanese horror comics. A few years after it was published, the author burned all of his artwork and abandoned Tokyo, never to be heard from again.

This history is further elucidated in an essay included in the volume by cartoonist Kawakatsu Tokushige.

Her Frankenstein will be available in spring of 2024. The 208-page book will retail for $19.95 and will include almost 20 pages of color extras, including a cover gallery and guide to Kawashima’s work.”