IndependentsMar 14, 2025
Stafford’s Diamonds in Ohio to Close After 40 YearsThe Dayton-based jeweler, which has been in business since 1985, was formerly known as Stafford Jewelers.
FinancialsApr 03, 2020
Signet Reaches $240M Settlement in Shareholder Lawsuit
The company denies the allegations, but said it reached a settlement to avoid spending more time and resources on the case.
Signet Jewelers reached a $240 million settlement in a shareholder lawsuit, subject to court approval.
New York—Signet reached a $240 million settlement last week in a shareholder lawsuit accusing it of misleading investors about sexual harassment allegations and the health of its credit portfolio, court documents show.
In a statement emailed to National Jeweler, Signet Jewelers Ltd. said while it believes the case is without merit, it made the strategic decision to enter a settlement to eliminate “risks, ongoing resource needs, and the distraction” of litigation.
“Consistent with our core values, we take all of our legal disclosure obligations seriously, and we have rigorous policies and practices to ensure we make required disclosures,” the company said.
Court documents show Signet denied any liability with respect to the allegations and refuted the claim that the price of its common stock was “artificially inflated by reason of any alleged misrepresentations, omissions, or otherwise.”
Signet described the settlement as a “positive step” for the company as it looks to focus its time and resources on its turnaround plan, called the “Path to Brilliance.”
The proposed securities class action against Signet was originally filed in 2016 by The Public Employees’ Retirement System of Mississippi, a pension fund and the lead plaintiff in the case.
The lawsuit includes all persons or entities that acquired Signet common stock between Aug. 29, 2013 and May 25, 2017.
The sexual harassment aspect of the shareholder lawsuit relates to Jock, et al. v. Sterling Jewelers Inc., a subsidiary of Signet.
That case was filed in March 2008 by a group of women who accused the company of paying them less than their male colleagues and passing them over for promotions because they are women.
While the Jock case does not include sexual harassment allegations, documents connected to the case were eventually unsealed and reported on by The Washington Post and other media outlets.
The reports painted a picture of a culture where women were objectified, disrespected and scared to report what was happening out of fear of retaliation.
The negative publicity sent Signet’s stock price plummeting, a point noted in the shareholder lawsuit.
In regard to its credit portfolio, which has since been outsourced, the suit claims Signet hid losses on high-risk subprime loans that once made up 45 percent of its $1.7 billion customer loan portfolio.
Of the $240 million settlement, $205 million is expected to be paid by insurance with the company paying the remaining $35 million, Signet said in a 10-K filing.
The settlement is subject to the approval
Editors' Picks
Sponsored by
of Chief Judge Colleen McMahon of U.S. District Court for the Southern District of New York.
Signet previously sought to have the entire shareholder lawsuit dismissed, but McMahon denied that motion in November 2018.
The following June, the judge denied another motion by Signet to dismiss the sexual harassment aspect brought up in the shareholder lawsuit.
In short, the company claimed its code of ethics, which included statements about staying in compliance with the law and acting with integrity, were general statements and not something a reasonable investor would take into consideration when buying shares of the company.
McMahon disagreed with that statement, noting several examples of how Signet sought to reassure its investors that it did not operate a toxic workplace, including a denial of allegations in its SEC filings.
“As alleged, a reasonable investor—who otherwise would be concerned about how grave allegations concerning rampant sexual misconduct might affect her investment in Signet—took defendants at their word,” the judge wrote.
“As alleged, their word was not truthful.”
Attorney Kevin M. LaCroix, who was not involved in the case but wrote a blog post about the settlement, noted the settlement amount is significant, ranking 71st on the list of Top 100 Securities Class Action Settlements compiled by the ISS Securities Class Action Services.
He said to his knowledge, the Signet Jewelers settlement is also the first settlement in a #MeToo-related (sexual harassment-related) securities suit, though he noted the Signet case is more complicated than other #MeToo-related management liability lawsuit settlements, like the cases against 21st Century Fox and Wynn Resorts, because it prominently features allegations unrelated to sexual harassment.
“It is hard to know how much of the $240 million settlement of the Signet Jewelers securities suit is related to the underlying sexual harassment allegations,” LaCroix wrote in his blog post. “Clearly, some indeterminate but not-insignificant portion of the settlement is not related to the #MeToo allegations.”
Signet previously sought to have the entire shareholder lawsuit dismissed, but McMahon denied that motion in November 2018.
The following June, the judge denied another motion by Signet to dismiss the sexual harassment aspect brought up in the shareholder lawsuit.
In short, the company claimed its code of ethics, which included statements about staying in compliance with the law and acting with integrity, were general statements and not something a reasonable investor would take into consideration when buying shares of the company.
McMahon disagreed with that statement, noting several examples of how Signet sought to reassure its investors that it did not operate a toxic workplace, including a denial of allegations in its SEC filings.
“As alleged, a reasonable investor—who otherwise would be concerned about how grave allegations concerning rampant sexual misconduct might affect her investment in Signet—took defendants at their word,” the judge wrote.
“As alleged, their word was not truthful.”
Attorney Kevin M. LaCroix, who was not involved in the case but wrote a blog post about the settlement, noted the settlement amount is significant, ranking 71st on the list of Top 100 Securities Class Action Settlements compiled by the ISS Securities Class Action Services.
He said to his knowledge, the Signet Jewelers settlement is also the first settlement in a #MeToo-related (sexual harassment-related) securities suit, though he noted the Signet case is more complicated than other #MeToo-related management liability lawsuit settlements, like the cases against 21st Century Fox and Wynn Resorts, because it prominently features allegations unrelated to sexual harassment.
“It is hard to know how much of the $240 million settlement of the Signet Jewelers securities suit is related to the underlying sexual harassment allegations,” LaCroix wrote in his blog post. “Clearly, some indeterminate but not-insignificant portion of the settlement is not related to the #MeToo allegations.”
More on Financials
The Latest
Events & AwardsMar 14, 2025
JVC Reveals Recipient of Stanley Schechter AwardReeds Jewelers CEO Alan Zimmer will be presented with the honor at JVC’s annual luncheon.
CollectionsMar 14, 2025
Piece of the Week: Sorellina’s Aries Zodiac PendantThe piece, celebrating birthdays from March 21 to April 19, debuted with Sorellina’s new line of astrological pendants.
Brought to you by
Watch: GIA Field Gemology at the One-Hundredth Expedition: A Look Back and to the FutureSupplier Spotlight Sponsored by GIA
MajorsMar 13, 2025
Tanishq Opens 2 New Stores in the U.S.The Indian jewelry brand recently opened stores in Atlanta and Seattle.
Weekly QuizMar 14, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsMar 13, 2025
Chopard Unveils High Jewelry Collection Created From 6,225-Carat Emerald The 15 pieces were crafted from the “Insofu” emerald, discovered in Zambia in 2010.
MajorsMar 13, 2025
Jewelers Mutual Names New CFO, TreasurerChris Anderson is joining the insurance provider as the new chief financial officer and treasurer.
Brought to you by
Natural Diamonds Should Mean MoreNatural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.
Lab-GrownMar 13, 2025
JA Offering Some ‘Counter Intelligence’ on Diamonds Jewelers of America is distributing a brochure for retailers to use when discussing the differences between natural and lab-grown diamonds.
SourcingMar 12, 2025
5 Factors That Will Impact the Diamond Industry in 2025The industry is changing as it grapples with new realities around distribution, supply, and the need for consistent, effective marketing.
SourcingMar 12, 2025
Q&A: New GJEPC Chairman Kirit BhansaliBhansali discusses the potential impact of U.S. tariffs, demand for diamonds by market, and the “cautious confidence” in India right now.
Lab-GrownMar 12, 2025
Beyond Jewelry: Possibilities in the Lab-Grown Diamond SectorAs lab-grown diamond brands pop up across India, academics are researching how to grow demand outside of the jewelry industry.
SourcingMar 12, 2025
Indian Leader, Retailer Among 2025 DDG Honorees Govind Dholakia and Tanishq will be recognized for their contributions to the industry at the Diamonds Do Good Awards in Las Vegas.
IndependentsMar 12, 2025
Marla Aaron Migrates to LondonThe New York City-based brand has opened its first U.K. location with a permanent shop-in-shop at Liberty in London.
AuctionsMar 12, 2025
A Medieval Bishop’s Sapphire Ring Is Going Up for SaleA metal detectorist discovered the ring that is believed to have belonged to a bishop in the late 12th to early 13th century.
Events & AwardsMar 12, 2025
JA New York Announces Education, Live Demo LineupsOrganizers looked to new partnerships and interactive experiences to enhance the spring show, set for March 16 to 18.
Events & AwardsMar 12, 2025
Bogolo Joy Kenewendo to Speak at Annual JVC LuncheonKenewendo, Botswana’s minister of minerals and energy, will discuss the future of diamonds.
CrimeMar 11, 2025
Man in Florida Swallows Allegedly Stolen Tiffany & Co. Jewelry The suspect allegedly stole almost $800,000 worth of diamond jewelry from a store in Orlando and then swallowed it during a traffic stop.
ColumnistsMar 11, 2025
Creative Connecting: How to Pose on the Red CarpetAhead of the Gem Awards on Friday, Jen Cullen Williams and Duvall O’Steen share pro tips for taking the best photos.
CollectionsMar 11, 2025
Marco Bicego Celebrates 25 Years With Collection, CampaignFounded in 2000, Marco Bicego is commemorating its milestone anniversary with a “25 Best” collection and campaigns honoring its heritage.
TechnologyMar 11, 2025
Hill & Co. Launches New B2B Buyer DatabaseThose attending the company’s upcoming Zoom workshop will receive early access to “The List,” its new resource for finding buyers.
Events & AwardsMar 11, 2025
JSA to Honor GIA Employee at Annual LuncheonThe organization will present an award to Amy-Elise Signeavsky, law enforcement and diamond recovery manager at GIA.
MajorsMar 10, 2025
Terry Chandler to Retire After 24 Years as Head of DCA Chandler started his jewelry career at Michelson Jewelers, joining the Diamond Council of America as president and CEO in 2001.
CollectionsMar 10, 2025
MaeVona Co-Founder Debuts 3D-Printed ‘Tùsaire’ CollectionScottish American designer Maeve Gillies collaborated with Platinum Guild International on jewelry created by direct metal 3D printing.
Events & AwardsMar 10, 2025
The Jewelry Symposium Announces 2025 Scholarship WinnersAhead of its trade show in May, TJS awarded free registration and accommodations to five up-and-coming jewelry industry professionals.
Events & AwardsMar 10, 2025
These Designers, Journalists, and Retailers Are Up for a Gem Award The 2025 Gem Awards are set to take place Friday at Cipriani 42nd Street in New York City.
MajorsMar 07, 2025
Jane Fonda, Mariska Hargitay Star in Pomellato’s IWD CampaignThe annual star-studded campaign for International Women’s Day encourages collective action against domestic violence.
