May 21, 2012
REHEARING ON DE BEERS APPEAL DENIED
Payment of Class Action Claims Should Now Proceed
The De Beers class action matter, settled in 2006, now appears final. On May 21, 2012, the U.S. Supreme Court denied an application for a rehearing on a petition to review the matter. The petition was filed by two members of the "indirect purchasers class," consisting of consumers and retailers who had purchased diamonds during the class period. Their petition for review by the Supreme Court had previously been rejected on April 2, 2012. As there are no additional appeals pending, and the time has passed to initiate further appeals, there do not appear to be any additional obstacles to distributing settlement proceeds to class members.
The class action matter arose out of allegations that for many years De Beers controlled the price of diamonds. In settling the matter, De Beers created a claims fund of approximately $300 million. Class members who filed claim forms in 2008, and whose claims are determined valid by the court appointed Claims Administrator, may be paid on their claims as soon as this summer.
Shares of the settlement fund will be paid on a pro rata basis, based on the quantity and price of diamonds purchased during the relevant period, and on the number of class members who filed valid claims.