De Beers settles legal Claims

De Beers agreed to pay an additional $45 million to settle legal claims in the US the company announced on July 14, 2006. This money will be additional remuneration to the
$250 million paid in November last year to resolve claims brought by a nationwide class action suit, which De Beers called the Sullivan agreement. The issue has reached a preliminary agreement and the further sum of money is still awaiting approval of the US District Court of New Jersey.

They include claims for injunctive relief against De Beers by Leider, as well as claims by people who bought rough and polished diamonds from De Beers. De Beers said final approval would take �some months�. The agreement does not include a civil action outstanding against De Beers by a former New York sightholder, WB David.

Legal experts have said that despite additional payment that has cost De Beers $300 million till today for gem-related cases, this settlement represents progress for De Beers. However it does not signal the end to US litigation. De Beers however commented that their business is run from London and South Africa. They have operated very successfully for decades without a US presence, and have no plans to change.