Save E-mail

Send this URL to a friend:

* - Denotes a required field.
Your Name*
Your Email Address*
Friend's Name*
Friend's Email Address*
Subject*
Message*

Print

Philadelphia--After a decade of legal wrangling, an appeals court has issued a decision that permits payment of claims in the De Beers class-action lawsuit to move forward.

However, the Jewelers Vigilance Committee (JVC) notes that payment in a case such as this is part of an administrative process that could take a year or more to complete. In addition, payments could be delayed further if the case is appealed again.

According to information supplied by the JVC and the Diamond Manufacturers and Importers Association of America (DMIA) on Tuesday, the en banc panel of the U.S. Court of Appeals for the 3rd Circuit in Philadelphia affirmed the class certification, overturning the decision of the three-judge panel that previously rejected it.

Though the period of time for filing a claim in the case has expired, payments to those that already have filed a documented proof of claim now are cleared to begin.

The JVC warns, however, that payments will be delayed if the case is appealed again. The appellants have 14 days to seek a rehearing of the case and also can apply for the U.S. Supreme Court to hear the case.

The De Beers class-action case in the United States dates back to 2001, when representatives of consumers and diamond resellers filed suit against De Beers, claiming the company acted in a monopolistic manner to control diamond prices.

There were two classes in the suit: direct purchasers of diamonds, which includes gem-quality rough and polished, that bought from De Beers, any of its companies or mining competitors between Sept. 20, 1997, and March 31, 2006, and indirect purchasers, which includes resellers, consumers and the majority of retailers, that bought diamonds, diamond jewelry or any other product containing gem diamonds between Jan. 1, 1994, and March 31, 2006.

In May 2008, De Beers, which didn’t admit any wrongdoing in the case, agreed to pay out $22.5 million to the direct purchasers and $272.5 million to indirect purchasers.

Appeals were filed in the case, and it was rejected at the appellate level in July 2010.

In August 2010, the appeals court ruled it would rehear the case en banc (before all 15 judges) at its convenience.

Along the way, both the DMIA and JVC were granted amicus, or “friend of the court,” status in the case and filed briefs urging the court to uphold the settlement.