A $295 million settlement in an antitrust case against the De Beers group of companies moved a giant step closer toward approval last month, buoying plaintiffs who only a few weeks earlier had feared the settlement could face serious hurdles.
Berman DeValerio represents the class of retailers in a case that alleges that De Beers unlawfully monopolized the worldwide supply of diamonds in a scheme to overcharge resellers and consumers. In May 2008, a federal judge approved a settlement, which included a cash payment to class members of $295 million.
But responding to objectors to the deal, the Third U.S. Circuit Court of Appeals, in a 2-to-1 ruling on July 13, 2010, remanded the case back to the district court, an action that could have resulted in substantial adjustments to the original $295 million proposed.
Berman DeValerio appealed that order. Late last month, a majority of the Circuit’s 15 active judges issued an order vacating the July 13 opinion and ordering that the case be heard before the entire Third Circuit panel en banc.The grant of en banc review is relatively rare.
A date has not yet been scheduled for the hearing, although Joseph J. Tabacco, Jr., the Berman DeValerio partner overseeing the case, expects it might take place later this year.
Meanwhile, the settlement funds remain in an escrow account awaiting final disposition. The proposed settlement also includes a comprehensive injunction limiting De Beers’ ability to restrict the worldwide supply of diamonds in the future.
The case is significant not only for the large cash component, but also because previous efforts to obtain jurisdiction over De Beers in both private and government actions had failed.
*In August 2017, our firm name changed to Berman Tabacco. Case references and content published before that date may refer to the firm under our prior name, Berman DeValerio.