De Beers Group is involved in a class-action lawsuit settlement brought on behalf of all diamond purchases in the 1994-2006-timeframe. The aggregate settlement amount stands mighty at $295M. However, only $135M of that is slated for consumers. The recognized claim percentage based on the purchase price of the diamond product can vary between 6% and 45% depending on the type and price of jewelry purchased and could be as high as 59% for loose diamond purchases.
While the settlement amount and the claim percentage tend to sound very lucrative to the consumer, it must be considered that the settlement spans a very broad class and timeframe. These two factors together make it very unlikely the consumer will receive anywhere close to the recognized claim percentages. A more likely scenario would be that the submitted claim percentage amounts would add up to a lot more than the settlement amount. In this situation, the amount consumers receive will be based on the pro rata calculation – divide the recognized claim amount by the total of such amounts claimed for the consumer sub-class to come up with each individual’s pro rata share. That value is multiplied by the $135M settlement amount (plus interest minus taxes and certain other expenses) to determine the actual amount. Below is an example with the calculation assuming your total claim amount is $5000 and the total of the claims submitted add up to $1B:
Your Recognized Claim Amount, A = $5000.
Total Recognized Consumer Claims, B = $1B.
Your Pro Rata Share, C=A/B = 0.000005
Settlement Amount Available For Consumer Claims, D = $135M
Claim Amount You Will Receive, E=C*D= $675
Obviously, the number above is dependent on the total amounts claimed by all consumers in the time period. Determining that amount is really a guessing game. Nevertheless, given the scope, it is worthwhile to make the claim especially since it is easy to file it though the online claims administration process.
Starting August, 2013 checks were mailed out and the average check amount was less than 2% of the claim amount (a $1,000 claim resulted in a check in the amount between $15 and $20). Also, if the check amount calculated came to less than $10, no check was issued.
Last Updated: 10/2013.
While the settlement amount and the claim percentage tend to sound very lucrative to the consumer, it must be considered that the settlement spans a very broad class and timeframe. These two factors together make it very unlikely the consumer will receive anywhere close to the recognized claim percentages. A more likely scenario would be that the submitted claim percentage amounts would add up to a lot more than the settlement amount. In this situation, the amount consumers receive will be based on the pro rata calculation – divide the recognized claim amount by the total of such amounts claimed for the consumer sub-class to come up with each individual’s pro rata share. That value is multiplied by the $135M settlement amount (plus interest minus taxes and certain other expenses) to determine the actual amount. Below is an example with the calculation assuming your total claim amount is $5000 and the total of the claims submitted add up to $1B:
Your Recognized Claim Amount, A = $5000.
Total Recognized Consumer Claims, B = $1B.
Your Pro Rata Share, C=A/B = 0.000005
Settlement Amount Available For Consumer Claims, D = $135M
Claim Amount You Will Receive, E=C*D= $675
Obviously, the number above is dependent on the total amounts claimed by all consumers in the time period. Determining that amount is really a guessing game. Nevertheless, given the scope, it is worthwhile to make the claim especially since it is easy to file it though the online claims administration process.
Starting August, 2013 checks were mailed out and the average check amount was less than 2% of the claim amount (a $1,000 claim resulted in a check in the amount between $15 and $20). Also, if the check amount calculated came to less than $10, no check was issued.
Last Updated: 10/2013.
2 comments :
I've been back to diamondsclassaction.com but there hasn't been an update for months. Do you know the status of paying out those claims?
The following website says the settlement is being challenged:
http://www.topclassactions.com/lawsuit-settlements/closed-settlements/4-debeers-diamond-settlement
Regards,
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