A federal appeals court has set aside a $295 million
settlement of a class action antitrust suit alleging a price-fixing conspiracy
in the international market for diamonds that was allegedly orchestrated by the
De Beers group of companies headquartered in South Africa, according to a news report.
According to the report, the 3rd U.S. Circuit Court of
Appeals ruled that the settlement must be vacated because the lower court had
improperly certified a nationwide class of indirect purchasers despite
recognizing that some of those plaintiffs would be barred from pursuing such
indirect claims under the laws of their own states.
In the suits, the 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
For more on the ruling, click here.