A B.C. court will hear a lawsuit accusing international diamond behemoth De Beers and other diamond producers of a conspiracy to fix prices for the precious jewels.
The proposed class-action lawsuit filed by Michelle Fairhurst alleges that executives of the gem companies secretly banded together to keep prices high and eliminate competition.
Justice Brenda Brown ruled Wednesday that the B.C. Supreme Court has jurisdiction in the matter, despite De Beers' argument that it does not conduct business in the province.
"The diamonds were sold in British Columbia through normal distribution channels," Brown wrote.
"The diamonds arrived in British Columbia in the ordinary course of De Beers' business, and the defendants knew or ought to have known that the product would be sold in British Columbia."
Fairhurst describes herself in the suit as diamond jewelry purchaser who has been forced to pay unfairly high prices for gems because of the alleged price-fixing conspiracy. She filed the action on behalf of British Columbians who believe they've been ripped off by the diamond "cartel."
The defendants listed in court documents include Anglo American PLC, Central Holdings Limited, S.A., De Beers Canada Inc., DB Investments, Inc., De Beers S.A., De Beers Consolidated Mines Ltd., The Diamond Trading Company Limited, CSO Valuations A.G. and De Beers Centenary A.G.
None of the allegations in the suit have been proven in court.
