Valcom, a vertically integrated entertainment company, has filed suit on Monday against POW! Entertainment and Stan Lee claiming breach of contract involving a joint venture agreement.  Valcom, which has filed for Chapter 11 bankruptcy protection, claims that it has paid $276,000 to POW! Entertainment and has been frozen out of a deal between POW! Entertainment and the Disney Company. 

POW! Entertainment responded with $10 million countersuit charging failure to perform and fraud by Valcom, claiming that after 'repeated failures by Valcom to discharge its obligations, POW! terminated the relationship.'  According to POW! Valcom never had the financing the company claimed when entering into the agreement with POW!, and failed repeatedly to provide the funding ageed to under its agreement with POW!, making only 3 of its required 24 overhead payments.