Jury Rules Against Blue Nile

A federal jury dismissed Blue Nile Inc.'s $60 million claim against The Yehuda Diamond Company, according to a press release from Yehuda Diamond's. According to the company, the verdict reaffirms its right to compare the prices of its clarity enhanced diamonds to the untreated diamonds sold by online retailer Blue Nile.

Blue Nile claims in the lawsuit that Yehuda Diamond had engaged in false or misleading advertising.

The suit brought by Blue Nile and heard last month in U.S. District Court for the Western District of Washington, involved Blue Nile's efforts to prevent Yehuda Diamond from comparing the price and appearance of its clarity enhanced diamonds to those natural untreated diamonds sold by Blue Nile.

Yehuda Diamond contended that its price comparisons are in the best interest of consumers. After 4-1/2 hours of deliberations, the jury agreed, dismissing both Blue Nile's federal and state claims that Yehuda Diamond had engaged in false or misleading advertising.

"This is a momentous victory for all consumers and for free-market competition," said Dror Yehuda, president of Yehuda Diamonds. 

Yehuda said that his company will continue to press its own lawsuit against Blue Nile filed in November 2008 in U.S. District Court for the Southern District of New York.

In that ongoing case, Yehuda Diamond contends that consumers who purchased rubies, emeralds, sapphires or jewelry containing those stones from Blue Nile were not informed that the gemstones had been treated to enhance their appearance.

Blue Nile did not comment or release any information about the ruling.