De Beers Diamond Settlement – An Opportunity To Get Back Up To 59% Of Your Retail Purchase Price

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.