Diamond Comic Distributors’ new parentco Ad Populum has launched a lawsuit against Alliance Entertainment (AENT) for allegedly poaching employees and stealing trade secrets.

This move comes after the US Bankruptcy Court for the District of Maryland approved joint bidders Ad Populum and Universal Distribution to acquire all of Diamond’s assets in May for US$57 million. Previously, AENT had been the initial winner of the assets in March, but terminated its US$72-million bid when it claimed that Diamond committed fraud by concealing that its distribution contract with Wizards of the Coast (worth about US$39.9 million) would end after the deal closed. 

Ad Populum subsidiary Sparkle Pop filed its complaint two days ago in Maryland, claiming that AENT abused the bankruptcy process to gain inside access to Diamond’s trade secrets and other proprietary information. Ad also alleges that AENT has hobbled Diamond’s existing business by hiring several key executives before the sale was finalized, violating non-solicitation obligations and NDAs. 

These senior hires include ex-VP of sales Mike Schimmel—who now serves as AENT’s SVP of sales—and Joe Lunday, its former e-commerce sales director, who was appointed director of collectible sales at AENT earlier this month. Both execs have worked at Diamond for more than 20 years, but Ad’s complaint says Alliance was prohibited from hiring any of them until October 2026. 

Ad/Sparkle Pop is asking the court to award compensatory damages and attorney’s fees in an amount determined at trial, in addition to filing a temporary restraining order and permanent injunction preventing Alliance from attempting to solicit any more of Diamond’s employees or its clients.