In 2001, a class action lawsuit was filed on behalf of two classes against De Beers: direct purchasers of gem-quality rough and polished diamonds that purchased from De Beers and mining competitors between 1997 and 2006, and indirect purchasers of gem-quality diamonds (this class including retailers and consumers) between the same time frames.
The lawsuit was brought on initially by representatives of consumers and re-sellers of diamonds claiming that the London-based diamond company acted in a monopolistic manner to control diamond prices.
De Beers never admitted wrongdoing in the situation but agreed on settlement in 2008. Since then, the case has been appealed a number of times.
Finally, with no more appeals allotted in this case, Consumers, purchasers, re-sellers and the like should be expecting checks from the trustee between September and the end of the year.
A summary of the settlement states: “The Settlement Agreement provides that $22.5 Million be distributed to the Direct Purchaser Class, and that $272.5 Million will be distributed to the Indirect Purchaser Class. De Beers also agrees to refrain from engaging in certain conduct that violates federal and state antitrust laws and submit to the jurisdiction of the Court to enforce the Settlement. “
It is still unclear how much each consumer, retailer, or purchaser will receive individually, but anything is better than nothing considering most members of the classes have been waiting over a decade for a verdict and payout to come into fruition.
In 2001, a class action lawsuit was filed on behalf of two classes against De Beers: direct purchasers of gem-quality rough and polished diamonds that purchased from De Beers and mining competitors between 1997 and 2006, and indirect purchasers of gem-quality diamonds (this class including retailers and consumers) between the same time frames.
The lawsuit was brought on initially by representatives of consumers and re-sellers of diamonds claiming that the London-based diamond company acted in a monopolistic manner to control diamond prices.
De Beers never admitted wrongdoing in the situation but agreed on settlement in 2008. Since then, the case has been appealed a number of times.
Finally, with no more appeals allotted in this case, Consumers, purchasers, re-sellers and the like should be expecting checks from the trustee between September and the end of the year.
A summary of the settlement states: “The Settlement Agreement provides that $22.5 Million be distributed to the Direct Purchaser Class, and that $272.5 Million will be distributed to the Indirect Purchaser Class. De Beers also agrees to refrain from engaging in certain conduct that violates federal and state antitrust laws and submit to the jurisdiction of the Court to enforce the Settlement. “
It is still unclear how much each consumer, retailer, or purchaser will receive individually, but anything is better than nothing considering most members of the classes have been waiting over a decade for a verdict and payout to come into fruition.
