Diamonds Class Action - How Much Can I Get Back?

Posted by Sean | Posted under Misc, Urgent | May 15, 2008

Thanks to RC at Think Your Way to Wealth for the post on Diamond Class Action Lawsuit.

~~note: you have less than a week to file at diamondsclassaction.com, if you qualify.~~

If you want a summary, I suggest this article at Ohio.com or the discussion at Fatwallet.

Back-of-the-Envelope Calculations
(i.e. "How Much Can I Get Back?")

Now for the real issue. I filed this week… what should I expect?

The Ohio.com article says a $2,000 ring could yield as much as $640 (undiluted) or as little as $2 (diluted). However, we can see the entire universe of diamond buyers has NOT visited the claims site. In fact, it is not even close, if I’m interpreting the numbers correctly… like, in the neighborhood of 2 million uniques?

This chart corresponds with the lack of coverage I have seen in the media.

Especially compared to the Currency Conversion Fee case (credit cards):

Anyway, at this point, we have ~100million* cash and ~2million visitors.

* ($135,432,500 for the Consumer Subclass minus up to 25% in fees.)

If the traffic estimate is in the ballpark, average payout would be $50…
if everyone who visited the site receives payment.

if everyone was eligible
if everyone wanted "in"
if nobody procrastinated

i.e.

some people purchased outside the eligible dates
some people assumed it would not be worthwhile
some people visited in February and put off filing

I’d expect these things to lower claims somewhat. The only other factor is the average claim amount and your relation to it. Here, I have no idea. $4,000? More? Less? Hopefully, it does not get skewed too much by diamonds on the very high end.

Okay, so the math is fuzzy, but if I had to guess, put me down for $100, conservatively.

But if I get anywhere near $2,000 I’ll owe serious link love to Think Your Way to Wealth.

Your thoughts? Or estimates?

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2 Comments so far

budget123 May 16, 2008 11:26 am

wow.. Thanks for the info and link. I need to get on this.

I hope you are not lowering my share for the return by spreading the word
RC@ThinkYourWayToWealth May 19, 2008 7:34 pm

Thanks for the mention!

RC