De Beers Settles U.S. Class Action Suits for $250 Million

Diamond miner De Beers announced today that it has settled the majority of civil class action suits filed against it in the United States. It added that the settlement agreements relate to claims brought by a nationwide class of indirect purchasers by Sullivan, Hopkins, Cornwell and Null for $250 million.

De Beers added in a release that the settlement of the US class action litigations against the international business of De Beers will not be financed from, or have any material impact on, any of the company's mining operations in southern Africa.

The company said it believed that the settlement will be beneficial to De Beers' partners and stakeholders in southern Africa as well as elsewhere in the world.

The following is the release from De Beers:

"It was announced today that agreement has been reached, and a preliminary approval order issued, to settle the majority of civil class action suits filed against De Beers in the United States.  This settlement does not involve any admission of liability on the part of De Beers and will bring an end to a number of outstanding disputes.

“We believe that settling these suits is the most sensible and responsible course of action for the company to take.  It is consistent with the other steps we have taken in both the US and Europe to restructure and modernize both our operations and business model, and is in the best interests of De Beers’ partners and stakeholders in southern Africa and elsewhere in the world” said Gary Ralfe, De Beers Managing Director.

“With this settlement behind us, De Beers can now focus greater attention and resources on being a leader in all of our markets and playing a leading role to address humanitarian issues such as the fight against HIV/AIDS. We will continue to work on these issues in consultation with the international community”, he added.

The settlement is subject to final approval by the Honorable Stanley R. Chesler, District Court Judge for the United States District Court for the District of New Jersey. De Beers hopes that the settlement will be approved during 2006.

De Beers believes that a successful conclusion to these suits will allow the company to more effectively pursue its global interests by removing the cost, risk, reputational impact and distraction from the company’s core activities required to defend multiple class actions and possible further litigation.

We do not wish to comment or speculate on the approval process itself, or the issues under consideration by the court.  Therefore, for the time being, we have nothing further to add to this statement."