Yehuda Diamonds Files Lawsuit Against Blue Nile On Consumers Behalf
NEW YORK – (December 1, 2008) Yehuda Diamonds filed a federal lawsuit seeking to require Blue Nile, Inc., which claims to be the world’s largest online retailer of certified diamonds and fine jewelry, to offer a full and complete refund to any Blue Nile customers who wish to return emeralds or emerald jewelry items purchased from the company. The complaint, “Diascience Corp. dba Yehuda Diamond Company and John Does. nos. 1-10, vs. Blue Nile Inc.,” was filed November 12 in U.S. District Court for the Southern District of New York (Court Case #08CV9751). Blue Nile shares are listed on the NASDAQ under the ticker symbol NILE.
Specifically, the civil complaint alleges that without notifying consumers, Blue Nile sold emeralds (including emerald-containing jewelry) that have been filled with oil, wax, resin or other substances to enhance their appearance.
Such filled emeralds are far less valuable than non-enhanced emeralds, rely on an enhancement process that is not permanent, and typically require special care when cleaning – facts that Blue Nile did not disclose to its customers, according to the complaint.
The suit contends that Blue Nile’s deliberate withholding of information was contrary to the Federal Trade Commission’s disclosure requirements for enhanced gemstones, as described in a manual for jewelers produced by the American Gem Trade Association (AGTA).
Read the full details here.