De Beers' lawsuit to be heard soon

De Beers' lawsuit to be heard soon

Claimants say that De Beers was involved in unfair trade and promotions

De Beers S.A and its associated companies seem to be immersed in class action lawsuits, where the claimants are asking for money damages on behalf of diamond purchasers. According to Resource Investor, the lawsuits connote that De Beers and subsidiaries had violated antitrust, unfair competition and consumer-protection laws by monopolizing diamond supplies, and had conspired to control the diamond prices by fixing and raising them as per their discretion. The company was also charged with false advertising.

The settlement which is being heard in the US District Court for the District of New Jersey, states that De Beers would be liable o pay $22.5 million to the Direct Purchaser Class Members who have submitted valid claims, while $272.5 million must be paid to Indirect Purchaser Class Members also with valid claims. The claim applies to diamonds purchased between January 1, 1994 and March 31, 2006. The Court will hold a hearing on the Settlement, called the “Fairness Hearing,” at 10:00 a.m. on April 14, 2008.

http://www.diamondworld.net/newsroom/news.asp?newsid=1902