JVC Asks Court to Uphold De Beers Class Action Settlement Approval
June 10, 09
The Jewelers Vigilance Committee (JVC) filed a court motion seeking “friend of the court” status in the De Beers class action lawsuit. JVC filed the brief and motion, urging the U.S. Court of Appeals for the Third Circuit to uphold the order approving the settlement of the lawsuit.
According to JVC, a small number of consumers, claiming minimal amounts of damages, appealed the court-approved settlement, thereby substantially delaying the payment of claims.
The original claims in the lawsuit brought by representatives of consumers and re-sellers alleged that De Beers acted in a monopolistic manner to control diamond prices. The defendants have not admitted to any such conduct in settling this case, JVC said in a release Tuesday.
Consumer/appellants claimed a number of procedural defects in reaching the settlement, and challenged the size of the attorney fees granted by the Court. “JVC does not take any position regarding the specific claims raised by appellants.”
JVC said it filed the brief and motion in response to the harsh economic climate jewelry retailers and manufacturers face. “The appeals filed by a small number of consumers who seek minimal damages delays payment of millions in claims to resellers that could act as an economic stimulus in the jewelry industry. No payments to thousands of consumers and re-sellers will be made on eligible claims until all appeals are resolved.”
The class action lawsuit against De Beers was filed on behalf of three classes of purchasers who bought diamonds during the class period: (1) direct purchasers of diamonds (gem quality rough and polished) who bought from DeBeers, or any of its companies or mining competitors, (2) indirect purchasers of gem quality diamonds for resale, and, (3) consumers who purchased gem quality diamonds.
“As the legal guardian of integrity in the jewelry industry, JVC is eager for the speedy settlement of the De Beers Class Action lawsuit,” said Eli Haas, JVC’s chairman of JVC’s board.