What Happened to the Diamond Reimbursement Class Action Suit

The De Beers diamond company has settled its class action lawsuit –it will pay millions! 272 million will be split up by the number of people filing a claim. This lawsuit spans a 12 year period. Anyone who bought a diamond during those twelve years may be entitled to compensation. In order to file a claim you do not need any type of receipt or documentation. It is best to locate a copy of the receipt, as it may be requested later on in the process. The De Beers Company is not located in the U.S. and did not believe that the courts in New Jersey had a right to prosecute the. It turns out that the courts were never given a chance since a settlement was reached.

When a settlement is reached, both parties agree to stop any further court proceedings. Many times this is done to prevent further court and attorney’s fees. If one side is feeling the pressure and realizes that they may lose in trial, a settlement is usually offered.

In this case the defendants were accused of violating antitrust laws and creating unfair competition. The defendants consisted of mining companies, diamond sellers, and investment companies, myriad of other constituents associated with the number one diamond seller in the world.

What it boils down to is that de Beers had a monopoly on the diamond business and were manipulating the prices. As part of the settlement agreement an injunction has been placed on the defendants. This injunction mandates that the companies involved follow anti trust laws, and prohibits them from manipulating the supply of diamonds or fixing prices.

The last date to file a claim was March 19, 2008. Claims can be filed after this date, but there is no guarantee it will be considered. There are several categories under the settlement to categorize claim holders. The 295 million dollars will be divided into two major categories and then two other subcategories. Once all of the claims have been filed, each subcategory will be divided by the number of claims and then monies allocated accordingly.

This entry was posted on Thursday, March 18th, 2010 at 7:04 pm and is filed under Class Action Information, Legal. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

 

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