Posted in: Ablaze Publishing, AfterShock, Black Mask Studios, Boom, Comics, Dark Horse Comics, Fantagraphics, Valiant | Tagged: Alien Books, American Mythology, diamond

Now Diamond Comics, The Debtor Is Suing All The Comic Book Publishers

Diamond Debtors are suing comic publishers via adversary proceedings in alphabetical order, starting with Ablaze, Action Lab, AfterShock, Alien and American Mythology

Published Tue, 09 Sep 2025 14:46:05 -0500

by Rich Johnston

Last updated Wed, 10 Sep 2025 05:41:16 -0500

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In new legal filings hitting the docket now, Diamond Comic Distributors Inc, the Diamond Debtors in the Chapter 11 bankruptcy case, have begun suing comic book publishers in adversary proceedings. The same comic book publishers whose stock is held by Diamond on consignment, and which the Diamond Debtors have been seeking to liquidate and keep the proceeds. The Diamond Debtors are separate from Sparkle Pop/Ad Populum, which bought Diamond Comic Distributors at auction in May, and now have their own legal battles with the Diamond Debtors.

Previously, the Ad Hoc Committee, made up of Ablaze, American Mythology Productions, Avatar Press, Battle Quest Comics, Action Lab, Drawn & Quarterly, Fantagraphics, Green Ronin, Hermes Press, Living the Line, Paizo, Udon and Zenescope, had managed to get a declaration that Diamond had to act against every individual consignment publisher in an adversary proceeding (a lawsuit within the context of the bankruptcy) to claim that consigned stock. There appear to be 135 consignment vendors in total.

And the Diamond Debtors seem to be issuing these new adversary proceedings in alphabetical order. As of publication, they have filed against Ablaze, Action Lab Entertainment, AfterShock Comics, Alien Books, American Mythology Productions, Aspen MLT, Battle Quest Comics, Black Mask, Boom Studios, Dark Horse Comics, Digital Manga, Dstlry, and Dynamite Entertainment. UPDATE: And now Fantagraphics, Goodman Games, Green Ronin Publishing, Heavy Metal Media, Hermes Press, Humanoid, Inc., Living the Line, Magnetic Press, Massive Publishing, Netcomics, Oni Press, Paizo, Panini UK, Titan Comics, Udon Studios, Valiant Entertainment, Vault Storyworks and Zenescope.

The filing from the Diamond Debtors accuses the publishers of failing to properly secure their interest in the consigned goods by filing a UCC-1 financing statement with the Maryland Department of Assessments and Taxation, and that this oversight leaves the inventory vulnerable to claims by its creditors, effectively making it part of the bankruptcy estate, stating "The Defendant did not perfect any interest in the Defendant Supplied Consigned Inventory by filing one or more UCC-1 Financing Statements with the Maryland Department of Assessments and Taxation or otherwise." The necessity of such has already been disputed in a number of court filings. Diamond is seeking a declaratory judgment that Diamond's interest in the inventory trumps that of the publishers. Image Comics has already settled, retrieving some stock and letting Diamond have the rest uncontested. They seem to be the only publisher that has gone this route.