The De Beers diamond settlement is a huge class action lawsuit that will pay out hundreds of millions of dollars to consumers who purchased loose diamonds or jewelry and jewelry store owners who were affected by an alleged DeBeers monopoly, and who filed claims May 19, 2008.
Full Answer
What is the settlement with De Beers?
The settlement provides $295 million to purchasers of diamonds and diamond jewelry, including $130 million to consumers. In addition, De Beers consented to a historic injunction that prohibits De Beers from monopolizing the world supply of rough diamonds and from fixing the price of polished diamonds.
What is the De Beers diamonds antitrust class action?
The De Beers diamonds antitrust class action sought to end an alleged 60-year conspiracy to fix the price of rough diamonds in the U.S. by the De Beers group of companies. The litigation includes several cases including Hopkins v. De Beers Centenary A.G., et al., No. CGC-04-432954, which commenced on July 24, 2004, and Sullivan v.
Does De Beers have a monopoly on diamonds?
In addition, De Beers consented to a historic injunction that prohibits De Beers from monopolizing the world supply of rough diamonds and from fixing the price of polished diamonds. The injunction also requires De Beers to submit to the continuing jurisdiction of the United States District Court for enforcement of the injunction.
Did De Beers create a global diamond cartel?
The complaints charged that De Beers had created a global cartel in the markets of rough and polished diamonds – with a market share that reached nearly as high as 90% - through aggressive management of supply and prices, and collusive agreements with competitors, suppliers, and distributors.
Does De Beers sell blood diamonds?
Since 2000, some independent diamond dealers have not only claimed to sell diamond bunches that they bought from rebel groups to De Beers, but also that De Beers was aware of the origin of the diamonds. Currently on their website, De Beers boasts that 100% of their diamonds are conflict free.
Do all diamonds come from De Beers?
De Beers also sells about 10% of its rough diamonds through online auction sales. The company pioneered the approach in 2008 when it broke with 44 years of direct sales to hold the diamond industry's first online international auction sale.
Where does De Beers keep their diamonds?
LondonNumber 17 Charterhouse Street, a fortress in the heart of London, has been De Beers's headquarters since 1979, but the street has been its home since the 1930s. At its peak 90 percent of the world's diamonds passed through this structure.
Are diamonds controlled by De Beers?
Today, De Beers no longer has control of the diamond industry, and for the first time in a century, market supply and demand dynamics, not the De Beers monopoly, drives diamond prices. In the late 19th century a massive diamond discovery in South Africa prompted a diamond rush.
Do blood diamonds still exist?
It shows that the production of conflict diamonds still exists in Sierra Leone. According to the 2005 Country Reports on Human Right Practices of Africa from the United States, serious human rights issues still exist in Sierra Leone, even though the 11-year civil conflict had officially ended by 2002.
Who is the biggest diamond dealer in the world?
De Beers S.A., South African company that is the world's largest producer and distributor of diamonds. Through its many subsidiaries and brands, De Beers participates in most facets of the diamond industry, including mining, trading, and retail.
Who controls the world's diamond supply?
De Beers, founded in 1888, specializes in diamond exploration, mining, trading, retail, and industrial diamond manufacturing. At its peak, the international juggernaut owned 85% of the market.
What are the three most famous diamonds in the world?
The 3 Most Famous Diamonds in the WorldThe Centenary Diamond.The Golden Jubilee Diamond.The Great Star of Africa.
What percentage of diamonds are in a vault?
According to veteran GTA Online players and Tez2, Diamonds have an approximately 15% chance of spawning within the vault. That probability doesn't seem to have changed in 2021 either, as players this week have also more likely ended up with cash and artwork than Diamonds or Gold.
How much of the diamond market does De Beers own?
THE BUSINESS: * De Beers controls around 40 percent of the global rough diamond market.
Where do blood diamonds come from?
Diamonds have funded brutal wars in countries such as Angola, Central African Republic, the Democratic Republic of Congo, Liberia, and Sierra Leone, resulting in the death and displacement of millions of people. There is a reason they are dubbed 'Blood Diamonds'.
Are diamond prices artificially inflated?
Ultimately, larger mined diamonds (1ct+ and especially 2ct+) are rare in Nature and quite hard to do even in lab grown diamond. Thus, the price and value of diamonds (lab grown or otherwise) is truly set by market forces of supply and demand, not artificial scarcity.
What percent of diamonds does De Beers own?
THE BUSINESS: * De Beers controls around 40 percent of the global rough diamond market.
Where do diamonds come from?
Diamonds are found near the Earth's surface, primarily in South Africa, Russia, Australia, Botswana, India, Brazil, China and USA. However, there are about 35 different countries in total that produce them. These valuable minerals are transported to the Earth's surface through erupting volcanoes.
What family owns all the diamonds?
Thanks to a stockpile of the world's rough diamond supply, indelible marketing schemes and even negotiations with foreign governments for their diamonds, De Beers — owned by the Oppenheimer family since the 1920s — has been the most important name in one of the world's most lucrative businesses for almost a century.
Where do blood diamonds come from?
Diamonds have funded brutal wars in countries such as Angola, Central African Republic, the Democratic Republic of Congo, Liberia, and Sierra Leone, resulting in the death and displacement of millions of people. There is a reason they are dubbed 'Blood Diamonds'.
What is the De Beers diamonds antitrust case?
The De Beers diamonds antitrust class action sought to end an alleged 60-year conspiracy to fix the price of rough diamonds in the U.S. by the De Beers group of companies. The litigation includes several cases including Hopkins v. De Beers Centenary A.G., et al., No. CGC-04-432954, which commenced on July 24, 2004, and Sullivan v. DB Investments, No. 04-cv-02819, and earlier related cases that commenced in 2001.
How long did it take for the De Beers case to settle?
Working out the details took three years between Plaintiffs' Counsel and De Beers. On April 14, 2008, the Court conducted a fairness hearing and on May 27, 2008, granted final approval to the settlement.
What did De Beers do to prevent diamonds from being monopolized?
In addition, De Beers consented to a historic injunction that prohibits De Beers from monopolizing the world supply of rough diamonds and from fixing the price of polished diamonds.
When did the Supreme Court deny the initial distribution check?
On May 21, 2012, the U.S. Supreme Court denied the final petition for review. Pursuant to an Order of the Court, Initial Distribution checks were mailed to Authorized Reseller Claimants on August 31, 2012.
When did the Sullivan case settle?
In October 2005, the parties reached a preliminary agreement to settle the claims of all indirect purchasers nationwide, with Sullivan serving as the procedural vehicle for seeking court approval of the settlement, notice and claims administration. Working out the details took three years between Plaintiffs' Counsel and De Beers.
Who is the lawyer behind the De Beers settlement?
I talked the other day with Joseph Tabacco, one of the lawyers behind the $300 million De Beers anti-trust settlement, and he gave me an interesting update on how the money is being distributed …
What happens if you buy a diamond in the last decade?
In any case, if you’ve bought a diamond in the last decade or so, you are owed money, and you should collect it. We’ll keep you informed how to do that.
Is De Beers a monopoly?
De Beers will agree to abide by American anti-trust laws, and they are enjoined from ever being a real monopoly again, but that was likely not in the cards anyway. In the end the lawyers are the only ones really profiting (to the tune of about $20 to $30 million).
How much did the DeBeers diamond settlement cost?
Five years after it was announced, checks finally began going out to consumers this month in the $300 million DeBeers diamond settlement.
What is the lawsuit against DeBeers?
Several class action lawsuits against DeBeers and its affiliates claimed that the largest supplier of the world's diamonds violated antitrust, unfair competition, and consumer-protection laws by monopolizing diamond supplies, conspiring to fix, raise, and control diamond prices, and disseminating false and misleading advertising.
When did the Consumer Class stop selling diamonds?
The consumer class includes those who bought "any diamond or diamond jewelry or other products containing gem diamonds for personal use and not for resale between January 1, 1994 and March 31, 2006," according to the settlement.
