Wise Money Decisions

I couldn’t find the invoice for my wife’s engagement ring.  I called the store where I bought it a few years back.  They told me the amount.  I used the information to submit my claim form online.

If you have no idea what I’m talking about, you need to read about the De Beers diamond class action lawsuit.

To the right is a picture of a tension set.  It’s not my wife’s ring, but it’s similar.

It seems I get class action lawsuit notices on a regular basis.  I’m sure you do too. 

Doesn’t it just warm your heart to know the plaintiff bar is out there fighting for our rights on a contingency basis? 

I hardly ever submit a claim form.  It just doesn’t seem worth an hour of my time to preserve my right to a free ear bud. 

But every once in a while there’s an offer I can’t refuse.  I filed a claim form in the Microsoft case (I still haven’t used my voucher).  And I’m filing a claim form in the De Beers class action.

Remember, the deadline to submit a claim in the De Beers case is coming up on May 19th. 

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

Read my previous article on the case for more details.

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. 

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