Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
GradingOct 02, 2018
Attorney: Grading report class action is coming
Early next year, a class-action lawsuit will be filed against EGL International and “major retailers” charging that the lab systematically over-graded diamonds that the retailers then knowingly sold to consumers, National Jeweler has learned.
New York--Early next year, a class-action lawsuit will be filed against EGL International and “major retailers” charging that the lab systematically over-graded diamonds that the retailers then knowingly sold to consumers, National Jeweler has learned.
Nashville, Tenn.-based attorney Brian Cummings said Monday that the suit will be filed within the next 60 days by a “major national plaintiffs’ class-action firm,” which he is not yet authorized to name because the firm is still working on the case.
Expected to be filed in California, the main causes of action in the suit will be violations of state consumer protection acts, breach of express warranty and civil RICO (Racketeer Influenced and Corrupt Organizations), which allows those impacted by organized crime to collect treble (triple) damages.
Cummings said the suit will be filed in California because of the strength of that state’s consumer protection act and the volume of business done in California by the retailers that will be named as defendants.
While the exact number of defendants is unknown at this point, there are expected to be between 10 and 20 plaintiffs to start, though that number could grow. He said the intention is for the lawsuit to be limited to large retailers and not target small independent jewelers so it can be “more effective” and move more quickly.
News of a pending major class-action against EGL International and large retailers in the United States is the latest blow to the EGL International brand, which will cease to exist shortly.
While over-grading has been a much-discussed issue in the industry for years, it exploded in 2014.
There were a total of four individual lawsuits filed over EGL International grading reports in Tennessee alone, and they made headlines. Local NBC affiliate WSMV followed the story closely and, later, touted its role in helping to change the industry.
Several months after this news emerged from Nashville, Rapaport Group announced its decision to pull stones graded by any EGL lab from RapNet, its vast diamond trading network, and Polygon removed reports from EGL International only.
Then came even bigger news out of Israel: the EGL labs outside of the United States would be reorganizing, homogenizing their grading practices and eliminating the EGL International brand name, all under the direction of a single, new global manager, Menahem Sevdermish.
Cummings is the attorney who handled three of the cases filed in Nashville involving
EGL International grading reports. His clients settled their cases against the Genesis Diamonds recently, though the terms of those settlements were not disclosed.
He also represented a plaintiff in a similar case in Georgia but it was settled before a lawsuit was filed.
Cummings said he and another Nashville attorney, Brian Manookian, who also represented a client who brought and settled a case against Genesis in Nashville, approached the national law firm regarding over-grading because they saw it as a potential class action best handled by a large, prominent firm.
“(We felt) the clients would be best served by having a prominent class-action law firm take an active role in that matter,” he said.
He said the goal of the lawsuit is two-fold: to shine a light on the “fraudulent practice” of selling over-graded diamonds and to recover money for consumers who might have been defrauded when they bought these diamonds.
Cummings added that while he would be involved in some aspect of the class action, his exact role is unclear at this time.
More on Grading
The Latest
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
Weekly QuizApr 18, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired CollectionInterior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.
FinancialsApr 17, 2025
Movado Group to Increase Prices to Offset Tariffs ImpactDuring a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
Lab-GrownApr 17, 2025
NDC Launches Its Diamond Learning CenterThe free program provides educational content for jewelry salespeople and enthusiasts to learn or refresh their diamond knowledge.
Policies & IssuesApr 17, 2025
Jewelers of America Requests Tariffs Testimonials from MembersThe feedback will be used to prepare other jewelers for the challenges ahead, the organization said.
TechnologyApr 17, 2025
Technology Therapy Group Expands AI Training for Jewelry RetailersThe online sessions are designed to teach jewelers to use AI tools like ChatGPT and Claude to grow their business.
IndependentsApr 16, 2025
Catbird Expands to ChicagoThe opening marks the jewelry retailer’s first location in the Midwest.
CollectionsApr 16, 2025
Foundrae’s First Commitment Jewelry Collection Unites Through LoveThe “United in Love” collection offers tangible mementos of hearts entwined with traditional and non-traditional commitment heirlooms.
IndependentsApr 16, 2025
Indiana Jeweler to Host Black Jewelry Designer Pop-UpRobert Goodman Jewelers will hold a “Black Jewelry Designers and Makers” event on April 27.
MajorsApr 16, 2025
WJA Announces Board Members, New Chicago Chapter PresidentThe announcements follow a tumultuous start to 2025 for WJA, which saw a wave of resignations following controversial statements about DEI.
EditorsApr 15, 2025
Tariffs: What We Know Right Now Editor-in-Chief Michelle Graff answers questions about how the new taxes levied on countries like India and China will impact the industry.
EditorsApr 15, 2025
Q&A: Bogolo Joy Kenewendo on Making Deals, Marketing DiamondsKenewendo, Botswana’s minster of minerals and energy, discusses closing the deal with De Beers and the work that was missed along the way.
AuctionsApr 15, 2025
23-Carat ‘Golconda Blue’ Heads to AuctionThe historic fancy vivid blue diamond set to headline Christie’s Geneva sale next month could sell for up to $50 million.
FinancialsApr 15, 2025
LVMH’s Q1 Sales Slip 2 PercentLVMH CFO Cécile Cabanis also discussed the effects of tariffs so far.
CrimeApr 15, 2025
Jon Hamm Plays a Jewel Thief on Apple TV+The “Mad Men” and “The Morning Show” star steals jewelry, art, and handbags from his wealthy neighbors in “Your Friends & Neighbors.”
SourcingApr 15, 2025
Diamond Club West Coast Names 2025 BoardThe organization has reelected Kalpesh Jhaveri as president.
FinancialsApr 14, 2025
Movado to Restate Years of Financials Due to ‘Misconduct’ in Dubai An investigation found that the former managing director of Movado’s Dubai branch overstated and prematurely recorded sales.
CollectionsApr 14, 2025
Sauer Embraces Emptiness Through ‘Ma’ CollectionThe collection pays tribute to the Japanese philosophy of Ma, studying balance, stillness, and the interplay between presence and absence.
IndependentsApr 14, 2025
Illinois Jeweler Closing After 45 YearsMari Lou’s Fine Jewelry in Orland Park, a suburb of Chicago, is closing its doors.
AuctionsApr 11, 2025
Piece of the Week: A Replica of Princess Grace’s Wedding EarringsThese earrings by Van Cleef & Arpels, featuring the same design as a pair worn by Princess Grace, are up for auction at Woolley & Wallis.
Recorded WebinarsApr 11, 2025
Watch: Top Tips for Saving Time With AITwo experts share how artificial intelligence tools can help retailers run a more efficient business.
SourcingApr 11, 2025
Mikimoto Names New President, CEO for U.S. DivisionKentaro Nishimura, who has been with the pearl company since 1997, has been promoted to president and CEO of Mikimoto America.
