Tuesday, May 7, 2002

BRIAN HIBBS' RELEASE

According to a press release from San Francisco comic book storeowner Brian Hibbs, he is the lead plaintiff in a Class Action suit filed today in New York Supreme Court on behalf of all American comic book retailers against publisher Marvel Enterprises, Inc. The suit alleges that Marvel has repeatedly breached its Terms of Sale in its dealing with American comic book specialty stores.

According to Hibbs:

"Marvel's Terms of Sale states that a product delivered more than 30 days after 'the solicited on sale date specified at the time of purchase' or product which 'contains significant editorial or manufacturing differences from the solicited content' will be made either order adjustable (where retailers can stop or reduce the late shipping product coming into their store) or returnable. Comic book retailers buy Marvel Comics on a non-returnable basis. The suit alleges that Marvel Comics has systematically refused to recognize such products as order adjustable, in an attempt to increase profits at the storeowners' expense."

"I've been concerned," Hibbs said, "since the middle of 2001 when I began to notice how many Marvel comics were shipping late, or with different content or creative teams than we had ordered. These late and mis-solicited titles were clearly costing me sales. I tracked just the 30+ day late shipping books for an eight-month period and, using the sales charts estimates on ICV2, I was shocked to find that Marvel shipped over $6.2 million dollars in contractually late material!"

Nancy Ledy-Gurren of Ledy-Gurren & Blumenstock, LLP, the New York law firm representing the plaintiffs, said, "This is precisely the type of situation that a class action is designed to remedy. Marvel is treating all specialty store owners unfairly - uniformly turning its back on its own Terms of Sale. There is, in this type of commercial dispute, strength in numbers."

"Most comic book stores are under-capitalized, owner-operated affairs," Hibbs said, "and the individual losses per-store are far too small for us to take on Marvel individually -- Marvel could bury us one-by-one in legal fees, without even trying. By filing this as a Class Action suit, we hope that the court recognizes that the aggregate loss sustained by all American comic book retailers from Marvel's suspect business practices is a multi-million dollar problem."

"I would have given anything to have not filed this suit," Hibbs said, "but repeated queries to both Marvel and their distributor, Diamond Comics, brought no satisfaction in them living up to their Terms of Sale. What frustrates me is that Marvel set those terms themselves, and they're not living up to their most basic promises.

"When I was a child I read a lot of comics, and one moral lesson always stuck with me, a lesson given by Marvel's own Spider-Man: With Great Power Comes Great Responsibility. Marvel holds all of the power in this business relationship. Where is their responsibility?"

Hibbs runs Comix Experience in San Francisco and writes a column, Tilting at Windmills, for Comics and Game Retailer magazine published by Krause Publications.

Marvel did not comment on Monday.