Gregory Diamond
12-01-2005, 05:16 PM
De Beers settles $250 million consumer suit
DECEMBER 01, 2005 - Trenton, N.J. -- De Beers has agreed to pay $250 million to settle civil class action suits filed against it in the United States claiming that they fixed prices on diamonds, but in a statement released Wednesday, the company stressed that it was by no means admitting liability.
The settlement relates to claims brought by U.S. consumers claiming they overpaid for their diamonds, according to Diamond Trading Co. (DTC) spokesperson Lynette Hori.
"The sum will be distributed by a trustee or body appointed by the court," she says.
Published reports said the settlement will affect anyone who bought diamonds over the past 11 years. Consumers alleged that De Beers fixed the price of gems from 1994 to 2005, reports Bloomberg.com. The nationwide class of indirect purchasers relates to the civil suits of Sullivan versus DB Investments, INC., et. al., Hopkins versus De Beers Centenary AG, et. al, Cornwell versus D.B. Investments, Inc., and Null versus DB Investments, et. al. for $250 million.
"We believe that settling these suits is the most sensible and responsible course of action for the company to take," said De Beers Managing Director Gary Ralfe in a release. "It is consistent with the other steps we have taken in both the United States and Europe to restructure and modernize both our operations and business model, and is in the best interests of De Beers' partners and stakeholders in southern Africa and elsewhere in the world."
A preliminary approval order of the settlement has been issued, but it is subject to final approval by Stanley R. Chesler, District Court Judge for the U.S. District Court for the District of New Jersey. De Beers hopes that the settlement will be approved during 2006.
"This is another step on the road to creating a new, modern De Beers that is demonstrably compliant throughout the world," Hori says. "The settlement is a unique opportunity to resolve these cases without either side having to face the costs of lengthy and complex litigation. It allows De Beers to get on with doing business unburdened by historical claims."
However, a settlement doesn't necessarily mean the company won't face similar litigation in the future, and there are still a small number of outstanding civil actions that De Beers must resolve, according to Hori.
"By far and away the majority will have been addressed in this proposed settlement," she says.
De Beers' release noted that the settlement of the U.S. class action litigations will not be financed from or have any material impact on the company's mining operations in southern Africa.
DECEMBER 01, 2005 - Trenton, N.J. -- De Beers has agreed to pay $250 million to settle civil class action suits filed against it in the United States claiming that they fixed prices on diamonds, but in a statement released Wednesday, the company stressed that it was by no means admitting liability.
The settlement relates to claims brought by U.S. consumers claiming they overpaid for their diamonds, according to Diamond Trading Co. (DTC) spokesperson Lynette Hori.
"The sum will be distributed by a trustee or body appointed by the court," she says.
Published reports said the settlement will affect anyone who bought diamonds over the past 11 years. Consumers alleged that De Beers fixed the price of gems from 1994 to 2005, reports Bloomberg.com. The nationwide class of indirect purchasers relates to the civil suits of Sullivan versus DB Investments, INC., et. al., Hopkins versus De Beers Centenary AG, et. al, Cornwell versus D.B. Investments, Inc., and Null versus DB Investments, et. al. for $250 million.
"We believe that settling these suits is the most sensible and responsible course of action for the company to take," said De Beers Managing Director Gary Ralfe in a release. "It is consistent with the other steps we have taken in both the United States and Europe to restructure and modernize both our operations and business model, and is in the best interests of De Beers' partners and stakeholders in southern Africa and elsewhere in the world."
A preliminary approval order of the settlement has been issued, but it is subject to final approval by Stanley R. Chesler, District Court Judge for the U.S. District Court for the District of New Jersey. De Beers hopes that the settlement will be approved during 2006.
"This is another step on the road to creating a new, modern De Beers that is demonstrably compliant throughout the world," Hori says. "The settlement is a unique opportunity to resolve these cases without either side having to face the costs of lengthy and complex litigation. It allows De Beers to get on with doing business unburdened by historical claims."
However, a settlement doesn't necessarily mean the company won't face similar litigation in the future, and there are still a small number of outstanding civil actions that De Beers must resolve, according to Hori.
"By far and away the majority will have been addressed in this proposed settlement," she says.
De Beers' release noted that the settlement of the U.S. class action litigations will not be financed from or have any material impact on the company's mining operations in southern Africa.