If so, you may be entitled to a refund due to a class action lawsuit filed against De Beers.  A class action is one of those lawsuits where the lawyers make a few million bucks while you, the consumer that’s been harmed, receives fifty cents off your next video rental.  Seems fair.

What the Lawsuit is About

De Beers is a company that mines and sells diamonds.  De Beers is accused of monopolizing diamond supplies, fixing diamond prices, and disseminating false advertising.  Rascals. 

They have been sued on behalf of everybody in the U.S. that purchased diamonds anytime between January 1, 1994 and March 31, 2006.  The class action lawyers and De Beers have proposed a settlement of the lawsuit.  You are part of the settlement unless you opt out.

What You’re Entitled To

Under the terms of the proposed settlement, $135,432,500 will be divided up among consumers that purchased certain diamonds in the U.S. between January 1, 1994 and March 31, 2006.  Each consumer is entitled to a pro rata share of the settlement.  Until all claims are received, it is impossible to know each consumer’s share.  Also, the payout for each consumer is capped.  If your pro rata share is greater than the cap amount, then you will receive only the cap amount. 

I don’t know how the cap amount is calculated.  It’s probably on the settlement website but I haven’t found it yet.  If someone finds it, please post it in the comments.  It would be nice to see how it’s calculated.

There is an example on the website explaining that the cap amount for a $2,000 engagement ring is $640.  That amounts to a 32% refund of the purchase price.  So perhaps the cap amount is 32% of your purchase price.  If you bought an engagement ring, a 32% refund is a big deal. 

However, your pro rata share of the settlement may be much smaller than the cap amount.  Think of all the engagements, anniversaries, birthdays, and Christmases between 1994 and 2006.  I have to believe that millions of diamonds were sold during those 12 years.  Even if only 1 million consumers submitted a claim, each consumer would be entitled to only $135 on average. 

It’s probably worth filing a claim, but don’t expect a 32% refund.

What Diamonds Are Covered By the Lawsuit

Here is the explanation of what diamonds are covered.  But let me save you the trouble.  If you’re an average Joe that bought an average Joe diamond for an average Joe reason (engagement ring, anniversary gift, etc.), your diamond is covered. 

What You Need to Do

Fill out the online claim form by May 19, 2008.  There is also a version you can print and mail in.  The postmark deadline is May 19, 2008.

You may be asked to supply a proof of purchase later, but for now you don’t need to include proof of your diamond purchase unless you paid more than $10,000. 

Is It Worth Your Time?

Don’t know.  It depends on how many consumers file a claim.  It also depends on how long it takes to dig through your files to find how much you spent.  If you can find the amount without too much trouble, I’d file a claim. 

I’m just glad the lawyers were smart enough to settle for cash rather than a coupon for $1.50 off your next engagement ring.