Class Action Suit against De Beers Certified

A Madison, Illinois County Circuit Judge has certified a class action case against De Beers because it failed to appear or respond to a complaint by a local couple.

Judge George Moran, Jr. certified the class action last Friday, July 22, against DB Investments, De Beers S.A., DBCM, De Beers Centenary A.G. and the DTC.

The suit was filed against De Beers on February 17, the day before President George W. Bush signed into law the Class Action Fairness Act that makes class actions a little more difficult, on behalf of Emert and Katie Null of Madison County.

The Nulls claim that De Beers is a century old cartel, dominating the international rough diamond, controlling as much as 80 percent of the world diamond supply. Currently, the suit alleges, De Beers controls 50 percent of the world’s diamond supply, and an even greater percentage of the supply of two-carat and larger rough diamonds.

In 2003 De Beers used its market position to raise the price of rough diamonds three times during the year, allegedly creating a 10 percent hike in rough diamond prices, the Nulls claim.

Certifying is a procedure in bringing class suits, and comes during or after the summons and complaint is filed.  In some jurisdictions class certification may require additional discovery in order to determine if the proposed class has any cohesiveness.

At this time the defendants may attack the named plaintiffs, their relationship with the law firm or firms handling the case, and their ability to finance the litigation. The court might also examine the ability of the firm to prosecute the claim for the plaintiffs, and their resources for dealing with class actions.

In this case, the class action is brought on behalf of diamond purchasers to recover damages for violations of the Illinois Consumer Fraud and Deceptive Business Practice Act and for unjust enrichment.

The complaint states the action is not based on federal law and the Nulls do not seek and will not accept recovery in excess of $75,000 exclusive of costs and interest.

“Having reviewed the factual allegations of the complaint and plaintiff's motion for class certification the court hereby grants the motion for class certification,” Moran wrote, appointing the Nulls as class representative.