De Beers In Negotiations to Settle U.S. Lawsuit
February 24, 04
Diamond miner De Beers is reportedly holding talks with U.S. justice authorities to settle criminal price-fixing charges, reports the Wall Street Journal today (Tuesday).
Citing sources close to the negotiations, the talks started a year ago and are now in an advanced stage. De Beers is willing to plead guilty and pay a fine, which will allow it to return to the U.S. after nearly 50 years.
The charges alleging price fixing of industrial diamonds by the miner were made by the Justice Department in the late 1940s, shortly after World War II, causing the company to withdraw from the country.
Then in 1994 another suit was filled against De Beers and General Electric for a global conspiracy of price fixing. The charges against GE were dismissed, but the charges still stand against De Beers since the company declined to stand trial.
Two years ago, in February 2002, then-Congressmen Hall and Wolf called on the U.S. government to end antitrust charges against the company in the name of helping end the trade in Conflict Diamonds.
De Beers MD Gary Ralfe said at the time that peace with the US Justice Department is “highly desirable”.