Instapot. Instapot made too good of a product, most people buy one and its good for years. That’s good for consumers but terrible for investors. The company that bought them out and took them public saddled them with a ton of debt from other sectors and now they’re bankrupt.
Diamond Sports is suing Sinclair for doing the same, minus the “good product” part.
Sinclair bought up the Fox RSNs a few years back, renaming the company as Diamond Sports and the channels as Bally Sports. Not too long afterwards, they went bankrupt. Diamond is claiming that Sinclair has saddled them with massive debts and extraordinarily high management fees. Sinclair also kept the funds from the sponsorship agreement with Bally.
The lawsuit accuses Sinclair of receiving about $1.5 billion as a result of alleged misconduct, including fraudulent transfers of assets, unlawful distributions and payments, breaches of contracts, unjust enrichment and breaches of fiduciary duties.
“Diamond Sports Group is seeking to vindicate its rights and protect the value of the Diamond bankruptcy estate, including by recovering value from Sinclair Broadcast Group that was improperly transferred from Diamond prior to its filing for bankruptcy in March 2023,” a spokesperson for Diamond said in a statement.
Instapot. Instapot made too good of a product, most people buy one and its good for years. That’s good for consumers but terrible for investors. The company that bought them out and took them public saddled them with a ton of debt from other sectors and now they’re bankrupt.
Diamond Sports is suing Sinclair for doing the same, minus the “good product” part.
Sinclair bought up the Fox RSNs a few years back, renaming the company as Diamond Sports and the channels as Bally Sports. Not too long afterwards, they went bankrupt. Diamond is claiming that Sinclair has saddled them with massive debts and extraordinarily high management fees. Sinclair also kept the funds from the sponsorship agreement with Bally.
https://www.baltimoresun.com/business/bs-bz-sinclair-broadcast-sued-by-diamond-sports-20230722-ndvdj6btfreovbsyo7gk7eeony-story.html