DMIA Welcomes Payments by De Beers in US Class Action Suit

(IDEX Online News) – The Diamond Manufacturers & Importers Association of America (DMIA) has welcomed the payments on July 26 to companies which purchased directly from Diamdel and its competitors and are the result of the settlement of a class action suit against De Beers.

"Matters like these take a long time to be resolved," said DMIA's President Ronnie VanderLinden. "Although it took a while, those that had the claims approved are happy to receive the funds. It also signifies the end of an era!"

Ronald Friedman, DMIA's past president, said, "The DMIA had played a significant role in bringing the suit to a successful conclusion by filing papers in favor of the settlement in the appeal by objectors."

David Prager, the director of communications for De Beers, said, "This normalizes business for De Beers in America. If you think about the past century, this is a milestone moment. We have clearly not jumped into America with both feet, and we have resisted contracting with American companies. When you have normalized business in the States, a lot of those things fall away and you have a lot more opportunities."

According to the court order approving the distribution of the settlement, the settlement covers a number of class action lawsuits filed around the country, all alleging that "De Beers had monopolized the rough diamond market, charging anti-competitive prices and advertising in a false and misleading way."

The order reported that plaintiffs in those cases claimed those that bought diamonds from De Beers between 1994 and 2006 have paid higher prices than they would have in a truly competitive market. Jared Stamell, lead counsel said, "I am happy that this cash distribution is being made to members of the industry, many who are DMIA members and the most injured by the anti-competitive conduct."