I though this post from The Writer's Journey was appropriate in the light of troubles with Ellora's Cave.
The Flush Pile – An Author’s Perspective
Some of you may know the current situation with Ellora’s Cave. If not, this post at Dear Author should get you to the information you need.
The TL;DR is that several authors who write for Ellora’s Cave have said they are not being paid money due them. The rumblings began at least a year ago. Recently, EC laid off all of its freelance staff. Jane at Dear Author recently wrote a post in which she discussed the ongoing situation at EC. The owner of EC has now sued Jane for defamation. Do head over to DA if you want to know more about this situation. I am an author who was with a publishing company that was heading toward bankruptcy. (Dorchester Publishing) This post is about what the experience was like for me. My situation ended up with a silver lining, but the outcome I had was never certain, just as it is not certain for any of the EC authors who are wondering if they’ll ever get paid or if they are going to lose their books.