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Articles from DIAMOND JEWELLERY (846 Articles), DIAMONDS BY CUT - BRILLIANT (ROUND) (284 Articles)

The long-running case is expected to be wrapped up by the end of 2013
The long-running case is expected to be wrapped up by the end of 2013

De Beers compensation cheques in the mail

The final payments from the De Beers class action settlement should be made in the coming weeks, with the case – beginning more than 10 years ago – expected to close by the end of 2013.

As Jeweller reported in May last year, the long-running antitrust action that accused the company of price fixing was drawing to a close after the US Supreme Court denied a final appeal by De Beers.

The court decision meant the diamond-mining company was finally given the go-ahead to make compensation payments to retailers, manufacturers and consumers that bought its diamonds and diamond jewellery. 

The first cheques were mailed in August 2012 to jewellers and diamond dealers in the indirect purchase class. Multiple media sources have since reported that consumers, also part of the suit’s indirect class, have received compensation. 

Payments have been a long time coming, given the case was first settled in 2006, and approved by a US federal judge in 2008. De Beers was ordered to pay out around US$300 million (A$312 m) in total to trade companies and consumers. The diamond giant agreed to the settlement, but several appeals by plaintiff lawyers have held up the payments.

According to US trade publication National Jeweler, Plaintiff lawyer Jared Stamell said the next round of payments would go to members of the direct class, which consisted of those that bought rough and polished diamonds from De Beers, its auction arm formerly known as Diamdel or any of its mining competitors between 20 September 1997 and 31 March 2006. 

He added the cheques would be mailed in the next couple of weeks, provided they were able to “fill in some blanks” on some of the claims.

As the direct class bought directly from De Beers, it is said to receive a proportionately greater sum of money compared to those from the indirect class, with some of the payouts amounting to more than US$1 million.

Stamell explained there were two large outstanding claims that may require a return to court.

Despite this, however, the magazine reported that Stamell still expected the case to be wrapped up by the end of 2013. 

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Peter W Beck

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Tuesday, 14 July, 2020 08:27am
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