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Claiming a portion of a class-action lawsuit settlement might be too costly and time-consuming to be a diamond reseller’s best friend.

Though De Beers is dishing out a total of $295 million to settle a class-action lawsuit, $135 million will be allocated to consumers, and resellers located in Central Iowa aren’t sure going after their allotted piece of the pie will be worth the trouble.

“We are starting the processes now of making that decision,” said Bruce Owen, owner of AmeriGem in Urbandale. “Chances are we will (file a claim), but we have not made that final commitment yet. … It is a matter of whether or not the process is something we want to take on for the amount of the settlement we would be getting.”

Based on several class-action lawsuits filed asking for money damages, diamond purchasers, resellers and consumers who bought diamonds between Jan. 1, 1994, and March 31, 2006, may be eligible for a refund.

“Searching through all of the invoices, determining where (the inventory) came from, these are very time-consuming things,” Owen said. “We want to make sure it is worth the effort.”

Management at Josephs Jewelers also has not decided whether to file for a part of the settlement because of the amount of work involved.

“It is a lot easier for consumers to file,” said John Joseph, vice president of the retailer. “We have to go back over our invoices, code them by type of merchandise and try to remember who all we bought diamonds from every year.”

Chuck Kuba, president and owner of Iowa Diamond, said he plans to file because of the volume purchased for his store.

“We sold over 1,000 engagement rings last year,” Kuba said. “If everyone sent in over 1,000 claims, I can’t imagine what that would amount to nationally.”

Though some Greater Des Moines diamond retailers are still debating whether to file claims, De Beers’ large market share does not seem to be influencing the process.

“We have not decided,” said Charles Ganske, manager of M.C. Ginsberg Jewelers. “De Beers has been doing business worldwide. It is only the United States where there is concern about the monopoly status. They did not admit guilt; they simply reached an agreement to settle the thing.”

De Beers said in a statement on its Web site: “While we don’t accept the allegations, we do believe that settling this suit is in the best interests of our clients, our shareholders and consumers.”

Most people consider De Beers’ position in the diamond market to be a monopoly, Kuba said, but it is not – it is an oligopoly (market that is dominated by a small number of sellers).

“They are working with countries to buy the total production; if not the total, to buy a big chunk,” Kuba said. “…They are dealing with entire nations. How do you tell the country of Namibia, ‘Don’t sell your diamonds to De Beers’?”

The lawsuit claims De Beers and its associated companies violated antitrust, unfair-competition and consumer-protection laws by monopolizing diamond supplies, conspiring to fix, raise and control diamond prices, and disseminating false and misleading advertising, according to the class-action Web site.

“De Beers is key in maintaining the desire and prices of diamonds,” Owens said. “If diamonds did fluctuate, they would not have desirability as an investment.”

The U.S. District Court for the District of New Jersey is in charge of the majority of the lawsuits. The main lawsuits are Sullivan et al. vs. DB Investments Inc. et al., Civil Action No. 04-CV-2819 (SRC) (D.N.J.); ANCO Industrial Diamond Corp. et al. vs. DB Investments Inc. et al., Civil Action No. 01-CV-4463 (SRC)(D.N.J.); and British Diamond Import Co. vs. Central Holdings Ltd. et al. Civil Action No. 04-CV-4098 (SRC) (D.N.J.).

Claims must be filed or postmarked by May 19. To file a claim or learn more about the settlement, visit www.diamondsclassaction.com or call (800) 760-5431.