Diamond Dealers Club Lawsuit Dismissed

One the bitterest disputes in the Diamond Dealers Club’s history has just been tossed out by a New York court.

In March, the New York Supreme Court dismissed a lawsuit by former vice president David Abraham against the bourse. The suit contested the club’s two most recent elections.

Abraham had asked the court to invalidate a referendum that repealed the club’s traditional term limits. The referendum passed by three votes and allowed then-DDC president Jacob Banda to win re-election to an unprecedented fifth term. Abraham contended that some voters in the referendum were ineligible because they hadn’t paid their dues, and nonpayment of dues traditionally means suspension.

The court ruled, however, that the members in question had not received suspension notices and therefore “could not be considered ineligible to vote.”

Banda died in October 2009 and eventually was succeeded by vice president Moshe Mosbacher. Banda’s death made some question whether Abraham should proceed with his lawsuit, but he went ahead and, even after the dismissal, told JCK he was still “weighing his next step.” Abraham argued the judge never addressed the “irregularities and instances of wrongdoing” alleged in his lawsuit.

The DDC hailed the verdict. “The court’s decision affirms that the vote on our bylaws was conducted honorably and that there was no finding of wrongdoing by DDC or Mr. Banda,” said DDC managing director Dr. Martin Hochbaum.—RB