Posted in: Comics, Dynamite | Tagged: Ad Populum, diamond, Sparkle Pop

Dynamite Countersues Sparkle Pop For Two-Thirds Of A Million Dollars

Dynamite Entertainment files a counterclaim against Ad Populum/Sparkle Pop, the new owners of Diamond, for two-thirds of a million dollars

Last month, Sparkle Pop, the company owned by Ad Populum that acquired the Diamond Comic Distributors comics business at bankruptcy auction, now dubbed Diamond II, filed a lawsuit against comic book publisher Dynamite Entertainment for breaching an exclusive distribution agreement signed in 2015, and to recover costs, claiming they were owed $1.7 million. Now, Dynamite has filed a counterclaim, stating that they are the ones owed money from Ad Populum/Sparkle Pop themselves.  In a separate filing this past July, Dynamite claimed that Diamond Comic Distributors Inc., the debtor in this bankruptcy proceeding, owes them over a million dollars.

In the current filing, Dynamite claims that Sparkle Pop owes Dynamite Entertainment at least $644,403.35, saying that they "unjustly took possession of the consigned goods, distributed the consigned goods without the authority to do so, and benefited from the sales." This is something Sparkle Pop has already partly addressed in a separate court proceeding, and that money is currently sitting in escrow until a decision over the disposition of the consigned goods has been made by the court. The comic book publishers, JPMorgan Chase Bank, Sparkle Pop, and the debtor are engaged in mediation hearings this past week, but the status of that mediation is currently unknown.

Bleeding Cool will continue to report on the Diamond bankruptcy as it prepares to enter its second year.

You can use these Diamond tabs to keep up with the latest on Bleeding Cool. Here's a timeline if you want to catch up…

• On the announcement of Chapter 11 on the 14th of January, Diamond started a 13-week bankruptcy process run by financial firm Raymond James, got financing to operate, and announced an auction for its assets.
• Those assets included Diamond Comic Distribution, Alliance Gaming Distribution, Diamond Select Toys, CGA and Diamond UK
• Universal Distribution was named the Stalking Horse bidder for Alliance Games and Diamond UK, which required a purchase commitment of thirty-nine million dollars, but with certain discounts and privileges for taking that position.
• The auction took place, and it went late. There was food and breakfast billed for.
• And Alliance Entertainment, or AENT, was named the top bidder for the assets of $72,245,000, though not for Diamond UK. This was widely announced, including by Diamond themselves.
• Then we learned that a joint bid by Universal Distribution and Ad Populum came second and was named the back-up bid, with a bid of $69,130,000. With Universal getting Alliance Gaming and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else. Basic Fun was third with fifty million.
•  Bruce Ogilvie, AENT chairman, was invited onto a podcast with comic book retailers Dennis Barger and Jesse James after, apparently, watching my performance on the Beyond Wednesdays podcast in which he talked about AENT and Diamond.
• A court hearing with the Honorable Judge Rice in Courtroom 9-D at the United States Bankruptcy Court for the District of Maryland at 10 am was intended to ensure the legality of the bid and the process.
• But instead, over that weekend, the debtors declared that they had chosen the back-up bid from Universal and Ad Populum instead of AENT, despite AENT having bid more. No reason was given.Diamond's Dick Move: the
• AENT filed a lawsuit regarding this decision.
• It took the bankruptcy court to reverse that decision and state that AENT, with the higher bid, had won, though they would have to withdraw their lawsuit.
• AENT has terminated their winning bid and purchase.
• Universal Distribution and Ad Populum were back in the running
• Diamond declared "business as usual" but the courts threatened Chapter 7 over late paperwork.
• AENT sued Diamond, claiming fraud
• Diamond says it's all in hand and went back to court, wanting to be owned by Universal and Ad Populum.
• Sale of Diamond to Universal and Ad Populum was approved by the courts.
• Though Ad Populum paid more than we thought.
• Podcast blamed/credited with the current state of affairs
• Diamond tells Skyrush to stop claiming they won CGA.
• As part of court filings, Diamond released details for every comic store on account.
• We have some finality.
• Ad Populum and Universal Distribution officially acquire Diamond and related assets.
• The layoffs have begun.
• And continue.
• Diamond Select Toys has closed
• Diamond try and reassure retailers over ComicSuite
• Courts withdraw Chapter 7 bankruptcy threat
• We look at the future of Diamond Previews again
• PRH pulls out of Diamond entirely
• Well, not entirely, the UK can stay.
• Hermes Press says Diamond doesn't want to distribute their comics anymore… or anyone's.
• But Diamond pushes back on that, as they publish a new Previews.
• And they assure comic book stores that everything is going to be fine. Honest.
• Then send a letter to publishers which looks like it isn't
• Now they are looking for more money and longer to pay it back.
• Dynamite would like half a million now, please.
• Udon and Manga Classic have now cancelled all Diamond orders.
• Then so did Drem Productions
• And PRH starts to close their special retailer joining offer
• Diamond gets a fourth wave of funding and deadlines.
• Philbo Distribution launches.
• Alliance Entertainment hire seven senior Diamond staffers.
• Universal Distribution rumoured to be hiring Diamond staffers to enter the US market.
• Massive Distribution expands within Lunar
• Diamond has cancelled all their PRH orders.
• There are problems with Ad Populum's first payments to comics publishers
• Ad Populum sues AENT alleging breaches of confidentiality and staff poaching.
• Ad Populum still ghosting publishers.
• Bankruptcy timeline revealed it began in July 2024
• Diamond ends cash on delivery sales
• Hermes Press hires Steve Leaf
• Diamond responds to Dynamite
• Diamond closes No Cost Orders, sends out reminder emails to comic book stores
• Boom Studios makes layoffs.
• Zenescope pulls out of Diamond.
• AENT Says Diamond Claim They Poached Staff "Fails As A Matter Of Law"
• It's Claimed New Diamond Owner Said He's "Playing Chicken With Idiots"
• Mike Schimmel Talks, Under Oath, About The Diamond Comics Firings
• Dynamite jumps to Lunar Distribution
• Diamond takes Previews digital only
• Universal Distribution to distribute in the USA as well as Canada, starting with DC Comics
• Conflicting Statements Over Diamond, AENT And Ad Populum Lawsuits
• This Week, There Are Only Five Comics On Diamond's FOC
• Robert Gorin, Chief Restructuring Officer Of Diamond Comics, And Geek
• Titan Has Not Received Payments From Diamond Comics, Stops Supplying
• Fantagraphics Says That Diamond Is Holding Their Comics Hostage
• Kathy Govier, Chief Marketing & Communications Officer, Out At Diamond
• Confirmed, AENT Tried To Buy Diamond In October To Avoid Bankruptcy
• Dynamite Pulls Their Comics Out From Diamond Comic Distributors
• Diamond Moves To Liquidate All Consigned Comics "Held Hostage"
• FairSquare Graphics Calls Diamond "Thieves & Bandits", Brings Receipts
• Ultimate Comics Chain Refuses To Buy Diamond Liquidation Stock
• This One Trick Means Bandai Get Their Pokémon Cards Back From Diamond?
• Dren Productions Want To Know If Diamond Shipped Their Recent Comics?
• Publishers Have 3 Weeks To Object To Diamond Comics' Liquidation Plans
• Emily Botica, Vice President At Diamond Comics, Is Leaving Next Week
• SDCC Gossip: What's Happening With Diamond At San Diego Comic-Con?
• Universal To Offer DC Comics To US Retailers At Same Lunar Discount
• Comic Publishers To File Paperwork Against Diamond Comics This Week
• Diamond Pulls Its Pullbox And Cancels Its ComicSuite For Comic Shops
• The Exit Interviews Of Diamond Comic Distributor Staff In Full
• Andrew Aiello, Tom Derby & Ben Davis Buy CGA After Diamond Bankruptcy
• Dynamite Owed A Million By Diamond, Can't Make Payroll Next Week
• Ad Populum Can't Yet Deal Directly with Diamond Consignment Vendors
• As Court Denies Dynamite Over Diamond, Comic Creators Rally Round
• Paizo speaks out about their Diamond troubles
• TwoMorrows Legally Objects To Diamond Bankruptcy Liquidation Of Stock
• Graphitti Designs & Magma Comix File Legal Paperwork Against Diamond
• Dynamite, Fantagraphics, Drawn & Quarterly Team Up Against Diamond
• Sealed Transcripts Over The Diamond Comics Bankruptcy Auction, Opened
• Diamond's Reason To Reject Alliance Entertainment Was Down To One Hour
• AENT Claims "The Fix was Definitely in" on Diamond Bankruptcy Auction
• Diamond Comics Was Already Looking For A New Buyer Back In 2023
• Mad Cave Studios makes layoffs
• Dynamite Signs With Simon & Schuster For Bookstore Comics Distribution
• Avatar Press Joins Anti-Diamond Liquidation Publisher Coalition
• Bankruptcy Court Moves Diamond Hearings Till After San Diego Comic-Con
• Image Says Diamond's Goal Is "Stealing" $3,000,000 of Comics From Them
• JPMorgan Chase Reminds Diamond Comics As To Who Gets The Money
• Universal Makes DC Comics Available To US Shops Via Alliance Gaming
• Diamond Comics Sells Diamond UK For Over $2 Million To… Diamond UK
• How A Podcast "Created A Lot Of Problems" For Diamond Bankruptcy
• Diamond Comic Distributors More Than Doubles Its Shipping Prices
• The Empty Spaces Of Diamond And Dsltry At San Diego Comic-Con
• Alliance Claims Diamond Bankruptcy Auction "Rigged From The Beginning"
• Publishers Don't Know Who's Selling The Comics Coming Out of Diamond
• Remember, Remember, The 18th Of August For Diamond Comics Bankruptcy
• Overstreet Comics Price Guide Delayed Six Months by Diamond Bankruptcy
• Dynamite Fundraising Humble Bundle Last Day – $1600 Of Comics For $16
• Comic Book Publishers Vs Diamond… And What's Up With Steve Geppi?
• Diamond Comics Was Losing $1.3 Million Dollars A Week This April Alone
• Publishers Whose Diamond Liquidation Objections Are Not Being Heard
• The Human Fly's IPI Comics of Australia Pulls Out Of Diamond As Well
• Ad Hoc Publishers Cite Precedents in Diamond Comics Bankruptcy Battle
• Diamond Comics Bankruptcy Hearing On August 18th, Calls Witnesses
• Has Image Settled With Diamond Over Plans To Liquidate All The Comics?
• Dark Horse Joins The Consignment Group Filing Against Diamond Comics
• Courts Clear At Least Three Days For The Diamond Bankruptcy Hearing
• Who Had Been Selling Diamond Consignment Stock Since May 15?
• Comic Book Publishers Win Round One Against Diamond Comics In Court
• Terms Of Image Comics' Legal Settlement With Diamond Comics, Revealed
• Sparkle Pop Files Motion to Quash Trial Subpoena in Diamond Bankruptcy
• What JPMorgan Chase Knew About Diamond Comics And When They Knew It
• Diamond Comics Bankruptcy Hearing Will Continue At 2 PM Tomorrow
• Diamond Bankruptcy Liquidation Hearing Continued Until September 30
• Diamond's Biggest Retailer Sale Ever With 12,000 Different Print Items
• Diamond Is Holding A Million Dollars Worth Of Fantagraphics' Comics
• Diamond Must Now Act Against Each Publisher Before Liquidating Comics
• Diamond Debtors vs Sparkle Pop Over "Brazen And Unauthorized Actions"
• Raymond James Bills $3.8 Million In Fees For Diamond Comics Bankruptcy
• Saul Ewing Wants Another $2 Million In Fees For Diamond Bankruptcy
• Ad Hoc Reminds The Court Who Owns The Comics Diamond Want To Liquidate
• $7.5 Million Spent On Fees In The Diamond Bankruptcy Case, Up To July
• Consignment Group Joins In With Ad Hoc's Filing Against Diamond Comics
• Sparkle Pop: Diamond Debtor "All But Abandoned" Consigned Inventory
• Diamond Debtors Dispute Sparkle Pop Claims And Cite Bleeding Cool
• Diamond Comics Chapter 11 Bankruptcy To Extend Into 2026
• Now Diamond Comics, The Debtor Is Suing All The Comic Book Publishers
• Diamond UK To Hold A Comics Retailer Panel at MCM London Comic Con
• After 37 Years, Diamond Kills Previews Catalog, Lays Off Staff
• Gossip: Sparkle Pop/Ad Populum Plans To Sell Off Free Comic Book Day
• Diamond UK Confirms Management Buyout And Their Plans Going Forward
• Staffer: Diamond "Will Not Last Much Longer, Maybe… End Of The Year"
• Diamond Bankruptcy Court Hearing Is Now 22 Days Later
• Courts Order Sparkle Pop To Cease Sales Of Diamond's Consigned Comics
• Diamond Comic Distributors Changes Name To DCD II And Changes Its Bank
• Dynamite Gets Minor Victory Over Its $500,000 Claim Against Diamond
• Alliance Entertainment (AENT) Launch Their Own Previews Catalog Thingy
• Image Comics Plan To Settle With Diamond Comics, Approved By Courts
• TwoMorrows Believes They'll Never Get Paid By Diamond, Launches Appeal
• Universal Distribution Buys Free Comic Book Day
• Sparkle Pop/Diamond II Lawsuit Claims Dynamite Owes Them $1.7 Million
• Publishers & Distributors In Diamond Comics Bankruptcy Seek Mediation
• Meeting The New Owners Of Diamond UK At MCM London Comic Con
• Comics Publisher Humanoids Files For Chapter 7 Bankruptcy

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