Class-action Payouts in De Beers Diamond Company Settlement Due in Spring
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18.10.09, 10:46
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World
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National Jeweler quotes one of the attorneys involved in the De Beers class-action lawsuit as saying that there may be a settlement this Spring.
At a meeting of the Diamond Manufacturers and Importers Association of America (DMIA) held last week in New York City, President Ronald Friedman provided an update on the eight-year-old case.
Twelve consumers of the 60 million in the class who had filed various objections to the settlement reached in May 2008 have appealed. The appeals will be heard in January and an opinion on that hearing is expected within two to three months. If the court overrules the objections, distribution of settlement proceedings could begin in Spring 2010.
The De Beers class-action lawsuit, which was filed by representatives of diamond consumers and re-sellers from 2001, alleged that De Beers attempted to control diamond prices monopolistically.
At the time the suit was filed on behalf of two classes - direct purchasers of diamonds who bought from De Beers or any of its companies or mining competitors between Sept. 20, 1997 and March 31, 2006, and indirect purchasers of gem-quality diamonds, which includes both resellers and consumers who bought diamonds, diamond jewelry or any other product containing gem diamonds between Jan. 1, 1994 and March 31, 2006.
While De Beers did not confess to any wrongdoing it consented to the settlement in May 2008.
According to the settlement, $22.5 million is to be distributed to the direct diamond purchaser class and $272.5 million to the indirect diamond purchaser class.
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By: Rachel Lieberman, Israel Diamond Industry Portal
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