GIA, Pincione ‘Resolve’ Lawsuit

“The parties agreed that the grades at issue involved areas of subjectivity and fell within industry standards,” said Max Pincione’s lawyer yesterday as the Gemological Institute of America (GIA) announced that the lawsuit filed by Pincione in April “has been resolved”.

Pincione sued the GIA, Vivid Collection, Moti Spector of Vivid Collection, Ali Khazeneh, and Bill Farley, claiming that the GIA grading certificates of two diamonds that he bought from Vivid Collection and sold in Saudi Arabia were “upgraded”.

The lawsuit snowballed into an FBI investigation, an overhaul in GIA procedures, and four dismissals of GIA employees. But above all, it led to a global diamond industry concern that the developments might lead to lost consumer confidence.

Earlier this week, Pincione's lawyer told the New York Times that they are negotiating a settlement with the GIA. Yesterday the institute announced that the civil lawsuit filed by Max Pincione and Cimabue Ltd. has been resolved.

Ralph Destino, Chairman of GIA, said, “We are pleased this matter is behind us,” adding that “following a thorough independent investigation, the public can continue to have full confidence in the integrity of GIA’s diamond grading reports.”

“We will continue to enhance and strengthen our policies and procedures and will not tolerate any ethical violations by our employees or clients,” Destino added. The GIA said following the investigation that they will re-examine any diamond free of charge if its owner has any concerns about its grading.

Pincione’s lawyer, Joseph Tacopina, said, “The civil action filed by Max Pincione against GIA has been resolved. After reviewing the GIA grading reports, the parties agreed that the grades at issue involved areas of subjectivity and fell within industry standards.”

The sides did not disclose the terms under which the lawsuit has been resolved. At this point it is not known where the case against the other defendants stands.