De Beers Antitrust Class Action
Lieff Cabraser serves as plaintiffs' co-class counsel in a suit by diamond consumers against South African company De Beers, a privately held group of foreign-based companies and the world's largest diamond supplier.
Allegations Summarized
In the litigation, plaintiffs alleged that De Beers, a privately held group of foreign-based companies, had monopolized the international diamond business through its control of mines and a web of agreements with diamond suppliers in other countries. De Beers denied the allegation and maintained that it is not subject to the jurisdiction of United States courts.
Captioned Sullivan, et al. v. DB Investments, Inc., et al., the federal court class action names DB Investments, Inc., De Beers S.A., De Beers Consolidated Mines, Ltd., De Beers A.G., Diamond Trading Company, CSO Valuations A.G., Central Selling Organization, and De Beers Centenary A.G. as defendants.
District Court Approves Settlement
On November 29, 2005, U.S. District Judge Stanley R. Chesler preliminarily approved a settlement of the class action. Under the terms of the agreement, De Beers will pay $295 million to U.S. jewelry makers, retailers, and consumers who purchased diamonds and diamond jewelry beginning in 1994. Equally significant, De Beers agreed to an injunction requiring it to abide by the United States federal and state antitrust laws, and to submit to the jurisdiction of United States courts for enforcement of the injunction.
Following preliminary approval of the settlement, Judge Chesler appointed a special master to consider the allocation and distribution of the settlement money among jewelry makers, retailers, and consumers. In May 2008, the district court granted final approval to the settlement. Objectors to the settlement filed an appeal to the U.S. Court of Appeals for Third Circuit.
Status of Appeal
On July 13, 2010, the U.S. Court of Appeals for the Third Circuit vacated the settlement and remanded the case to the district court for further consideration. As set forth in a petition for rehearing en banc submitted by class counsel, the appellate decision is erroneous and places in jeopardy whether DeBeers, a known monopolist that has eluded U.S. jurisdiction for a century, will be held accountable for its violations of U.S. antitrust laws.
On August 27, 2010, the appellate court vacated its July 13, 2010 opinion and granted the petition for rehearing en banc. A date for oral argument before the en banc panel has not yet been scheduled.
Learn More
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About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP is a sixty-plus
attorney law firm with offices in San Francisco, New York and Nashville.
We represent businesses, governments and individuals as plaintiffs in class
and group actions as well as in individual lawsuits in cases involving
substantial losses. Since 2003, The National Law Journal has annually
selected Lieff Cabraser as one of the top plaintiffs' law firms in the
nation.
Lieff Cabraser has played a prominent role in federal
litigation under the Sherman Act on behalf of businesses in numerous markets
including computer components, prescription drugs, polypropylene carpets,
compact discs, credit cards, linerboard, carbon fiber, plastic laminates,
flat glass, industrial pigments and vitamins. We have also successfully
litigated antitrust claims against Microsoft Corporation for monopolistic
practices, and achieved record recoveries against El Paso Gas Co. and wholesale
electric companies for allegedly manipulating the price of energy in California. Learn
more about our firm.
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