Policies & IssuesMay 14, 2025
Here’s What Happened to Pope Francis’ RingBefore Pope Leo XIV was elected, a centuries-old procedure regarding the late pontiff’s ring was followed.
SourcingJan 07, 2014
Court tosses WB David claim against De Beers
A federal judge in New York has dismissed W.B. David & Co. Inc.’s lingering claim in its 10-year-old case against De Beers’ rough diamond sales arm, the last outstanding antitrust case against the diamond miner and marketer in the United States.
New York--A federal judge in New York has dismissed W.B. David & Co. Inc.’s lingering claim in its 10-year-old case against De Beers’ rough diamond sales arm, the last outstanding antitrust case against the diamond miner and marketer in the United States.
On Monday, U.S. District Judge Kimba M. Wood ruled that the now-bankrupt diamond company failed to prove that the sightholder system of De Beers’ Diamond Trading Co. (DTC) constituted a monopoly and constrained sightholders’ business practices.
She ordered the case dismissed with prejudice, meaning it cannot be reopened.
De Beers said in an emailed statement that it welcomed Wood’s decision, and noted that the judge also denied a request to file another amended complaint and ordered the case closed, marking the end of the last antitrust suit against De Beers in the U.S.
Yann Geron, one of the attorneys representing the Chapter 7 bankruptcy trustee now handling the estate of W.B. David & Co., did not respond to request for comment made late Tuesday.
According to background provided in court documents, New York-based diamond company W.B. David was a De Beers sightholder for more than three decades, from 1969 until it was dropped in 2003.
In 2004, W.B. David filed a $100 million lawsuit against a total of 90 defendants, including De Beers and the DTC. Counts included in the original complaint were racketeering, violation of antitrust laws and unfair competition, among many others.
Over the years, the case was whittled down and, along the way, W.B. David was forced into bankruptcy, leaving its trustee to head the case.
In 2011, the case was thrown out of court entirely but the Second Circuit Court of Appeals in New York later ruled that one claim, the “sight claim” could proceed, court papers show.
The claim alleges that the sight system of the DTC, as well as its predecessor, CSO Valuations, violated antitrust laws and that De Beers and its diamond brokers conspired to control sightholders’ business practices. It was, W.B. David contended, an “unlawful vertical restraint, and that W.B. David incurred damages by purchasing rough diamonds from [the Diamond Trading Co.] at artificially inflated prices.”
In her ruling issued Monday, Wood stated that the sight claim does not adequately allege a conspiracy resulting in an unreasonable restraint on trade nor does it prove the sightholder system was a monopoly.
“Even assuming defendant possessed monopoly power
in the relevant market, the sight claim does not allege that defendant’s sight system was anticompetitive,” court papers state. “No assertion is made, for instance, that the sight system excluded potential competitors or impaired the opportunities of rival firms.”
The judge said the factors W.B. David said made the sight system harmful to competition--the fact that only certain companies were selected as sightholders, rough diamonds were pre-selected and sightholders were forced to take their boxes and communicate through brokers--do not suggest exclusionary or anticompetitive conduct.
“As a general rule, businesses are free to choose the parties with whom they will deal, as well as the prices, terms and conditions of that dealing,” the ruling states.
In May 2008, De Beers reached a $295 million settlement in the huge antitrust case brought against it here by diamond purchasers, including retailers, wholesalers and consumers.
Purchasers accused the diamond giant of monopolizing supply and conspiring to fix prices. De Beers admitted no fault in the settlement, and the closure of the antitrust case opened the door for De Beers to operate openly in the U.S. market.
Due to numerous appeals, payouts in the case were still continuing as of last year.
More on Sourcing
The Latest
AuctionsMay 14, 2025
Custom Rolex Pulled From Sotheby’s SaleThe one-of-a-kind platinum Rolex Cosmograph Daytona was estimated to fetch up to $1.7 million.
Lab-GrownMay 14, 2025
State of Diamonds: What’s Next for Lab-Grown Diamonds?While the product has entrenched itself in the market, retailers and consultants are assessing the next phase of the category’s development.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeMay 14, 2025
Seattle Detectives Seek Public’s Help in Tiffany & Co. Robberies The police are trying to identify the man suspected of robbing two Tiffany & Co. locations in the area.
Weekly QuizMay 08, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsMay 14, 2025
Jeff Corey Elected Chair of JBT Board The well-known Maine jeweler takes over for Brian Fleming and will serve a one-year term.
Policies & IssuesMay 14, 2025
Foundrae Donates $11K to Ethical MetalsmithsThe donation was the result of the brand’s annual Earth Day Ingot event.
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest AdditionSupplier Spotlight Sponsored by GIA
IndependentsMay 13, 2025
Eiseman Jewels’ Renovated Dallas Store Is Bigger and BetterLocated in NorthPark Center, the revamped store is nearly 2,000 square feet larger and includes the first Tudor boutique in Dallas.
MajorsMay 13, 2025
DCA Announces New Learning Platform, Course UpdatesThe nonprofit has made updates to the content in its beginner and advanced jewelry sales courses.
MajorsMay 13, 2025
BIJC Launches New Education FundBIJC President Malyia McNaughton will shift roles to lead the new foundation, and Elyssa Jenkins-Pérez will succeed her as president.
TrendsMay 13, 2025
State of Jewelry Design: The Top 10 Jewelry Trends of the Past DecadeAs a nod to the theme of JCK Las Vegas 2025, “Decades,” National Jeweler took a look back at the top 10 jewelry trends of the past 10 years.
Lab-GrownMay 12, 2025
Lightbox to Go Dark by Summer, De Beers Says The company plans to halt all consumer-facing activity this summer, while Lightbox factory operations will cease by the end of the year.
Policies & IssuesMay 12, 2025
Tariffs on Chinese Imports Temporarily Slashed as U.S.-China Reach Deal Following weekend negotiations, the tax on Chinese goods imported into the United States will drop by 115 percent for the next 90 days.
Events & AwardsMay 12, 2025
Jewelry By Picasso, Dalí on Display at Florida Art Museum “Artists’ Jewelry: From Cubism to Pop, the Diane Venet Collection” is on view at the Norton Museum of Art through October.
Events & AwardsMay 12, 2025
CASE Awards Now Accepting Entries For 2025The deadline to submit is June 16.
IndependentsMay 09, 2025
Lugano Diamonds CEO Resigns Amid Internal InvestigationMoti Ferder stepped down Wednesday and will not receive any severance pay, parent company Compass Diversified said.
CollectionsMay 09, 2025
Pieces of the Week: Marie Lichtenberg’s Collaborations for Mother’s DayLichtenberg partnered with luxury platform Mytheresa on two designs honoring the connection between mothers and daughters.
CrimeMay 08, 2025
Former NYC Jewelry Store Employee Arrested in 2017 Choking Death of Boss Michel Desalles allegedly murdered Omid Gholian inside World of Gold N Diamond using zip ties and then fled the country.
EditorsMay 08, 2025
5 ‘Superfine’ Met Gala Jewelry MomentsAssociate Editor Lauren McLemore shares her favorite looks from a night of style inspired by Black dandyism.
Supplier BulletinMay 08, 2025
Instappraise Introduces Game-Changing Trifold Appraisal FormatSponsored by Instappraise
FinancialsMay 08, 2025
Brilliant Earth Notes an Uptick in Engagement Ring Sales in Q1CEO Beth Gerstein discussed the company’s bridal bestsellers, the potential impact of tariffs, and the rising price of gold.
IndependentsMay 08, 2025
Margot McKinney Lands in the U.S. With New BoutiqueThe brand’s first independent location outside of Australia has opened in Beverly Hills, California.
IndependentsMay 08, 2025
Verragio Announces New Regional Sales ManagerCathy Marsh will lead the jewelry company’s efforts in the upper Midwest and western United States.
FinancialsMay 07, 2025
Pandora Posts Strong Q1, Plans for TariffsThe company has multiple strategies for dealing with tariffs, though its CEO said moving manufacturing to the U.S. is not one of them.
ColumnistsMay 07, 2025
The Smart Lab: Building a Seasonal Marketing Strategy for Mother’s Day and BeyondConnecting with your customers throughout the year is key to a successful holiday marketing push.
TechnologyMay 07, 2025
Punchmark’s Latest Podcast Features a Very Special Guest National Jeweler Editor-in-Chief Michelle Graff joined Michael Burpoe to talk tariffs, consumer confidence, and the sky-high price of gold.
