Whiteflash-Diamond Playground

If you are a consumer who purchased diamonds in the US between Jan 2004 and March 2006 and would like more info check these sites: diamondclassaction FAQ and JVC Legal.

From TheTimes -De Beers, the world’s largest supplier of diamonds, has been ordered to pay $295-million following allegations about price-fixing in the US diamond market. The principal allegations of the class actions against the diamond giant, which is 45 percent owned by Anglo American, are that from January 1994 to March 2006, De Beers monopolised and controlled the supply of rough diamonds in violation of certain US federal and state laws. By manipulating supply, De Beers forced the prices of rough diamonds higher than they would otherwise have been. The lawsuits were brought against De Beers by individuals and businesses that bought loose diamonds and jewellery, or other products containing gem diamonds in the US. De Beers said it did not accept the allegations, but had agreed to pay the penalty. Lynette Gould, media relations manager for De Beers in London, said: “We do believe that settling this class action is in the best interests of our clients, our shareholders and consumers.” Under the proposed settlement, a $295-million fund has been created by De Beers. This settlement fund will be distributed to two groups, or classes, of purchasers: the direct purchaser class and the indirect purchaser class. Direct purchasers will be entitled to claim up to $22.5-million and indirect purchasers will be entitled to claim from the remaining $272.5-million in the fund. The US Diamonds Claims Administrator said direct purchasers included individuals or businesses, other than De Beers’ Diamond Trading Company sightholders, that purchased any gem diamond directly from De Beers or one of its diamond mining competitors between September 1997 and March 2006. It said indirect purchasers included consumers who bought gem diamonds and diamond products for their own use or as gifts, and resellers which bought gem diamonds and products for resale between January 1994 and March 2006. The deadline for US diamond buyers to file claims is May 19. The proposed settlement is currently pending in the US District Court for the District of New Jersey. The Diamonds Claims Administrator expects the court to hold an approval hearing on April 14, at which time the proposed settlement and the awarding of legal costs will be considered. Gould said: “We made the decision to put this matter behind us because we believe it will help us to focus on building De Beers’ future.”