Court Supports De Beers Class Actions Settlement

The United States Federal District Court in New Jersey will approve the U.S. Diamond Class Actions settlement with De Beers. The diamond giant said in response that it welcomes the ruling by Judge Stanley R. Chesler.

The judge said during the Tuesday Fairness Hearing in the settlement that a written decision approving the settlement would be forthcoming, and brought the proceedings to a close.

“We believe that settling these class actions allows us to put these matters behind us  and is in the best interests of our shareholders, clients and the consumer,” De Beers said in a statement. 

“Nothing is more important to De Beers than consumers’ confidence in diamonds and it is important for consumers to understand that this settlement in no way affects the value of their diamonds. The appeal and value of diamonds has never been higher. Diamonds are worth as much today - if not more - than they ever have been.”

De Beers offered in 2005 to settle the majority of civil class action suits brought against it in the U.S., putting up a $250 million fund, later increased to $290 million.

The settlement does not involve any admission of liability on the part of De Beers and will resolve a number of outstanding disputes.

At the time, the company said that it “believes that a successful conclusion to these suits will allow the company to more effectively pursue its global interests by removing the cost, risk, reputational impact and distraction from the company’s core activities required to defend multiple class actions and possible further litigation.”