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 States courts.
For more on the ruling, click here.