Diamond Sports Group, the struggling subsidiary of Hunt Valley, Md.-based Sinclair Broadcast Group that owns regional sports networks, has entered a legal fight with Sinclair as part of Diamond’s bankruptcy case, the Baltimore Sun reported. Diamond Sports, which is independently managed, filed a lawsuit under seal Wednesday in the U.S. Bankruptcy Court for the Southern District of Texas. Diamond, a subsidiary Sinclair created to hold the 19 sports networks it acquired from The Walt Disney Co., filed for bankruptcy reorganization in March, burdened by more than $8 billion in debt. 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.
