Charles & Colvard, Ltd., the sole manufacturer of moissanite jewels, said Monday its discussions with K&G Creations regarding possible settlement of the litigation between the parties have been unsuccessful.

Charles & Colvard’s Board of Directors confirmed that the Morrisville, N.C.-based company will move forward with the lawsuit filed on June 16, 2008 against K&G Creations, anticipating it may be necessary to continue the legal process through a court trial which is scheduled for December.

The company intends to vigorously pursue its collection claim against K&G Creations for in excess of $2.8 million with interest at a rate of 12 percent from July 4, 2008. The company said it continues to believe that the counterclaims of K&G  “are without merit, and the company intends to vigorously defend against the counterclaims.”

JCK