KC Jewelry Class Action Says Diamond Weight is Intentionally Overstated

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A California resident says KC Jewelry has been overstating the weight of diamonds on its jewelry’s labeling.

Plaintiff Sidney Greenbaum claims KC Jewelry Inc. and retailer Modern Jewelry Inc. have been conspiring to sell jewelry that is intentionally mislabeled as containing significantly more diamond weight than it actually has.

Greenbaum says in February 2016 he purchased a ring made by KC Jewelry from a Modern Jewelry retailer.

The KC Jewelry class action lawsuit includes photos of the ring that show it was labeled with the indication “4.25CT.”

According to Greenbaum, rules promulgated by the Federal Trade Commission govern the advertisement of diamond weights.

These rules allow diamonds’ stated weights to vary within a certain range, depending on how the weight is represented – whether it is represented as a decimal value or as a fraction of a carat.

The FTC rules say that diamond weights expressed as a decimal part of a carat must be accurate to the last decimal place.

Therefore, Greenbaum argues, the diamonds in his KC Jewelry ring represented as weighing 4.25 carats could permissibly weigh between 4.245 and 4.255 carats.

The actual weight of the diamonds in his KC Jewelry ring falls far below that allowable range, Greenbaum claims. He says he had the ring disassembled so that the diamonds could be weighed.

The diamonds in the ring weighed in at only 3.87 carats – a difference of 0.38 carats from the weight indicated on the ring’s label, and far outside the range of allowable variance permitted by the FTC rules, he argues.

In addition to KC Jewelry itself, Greenbaum also names as defendants Rouben Youssain and Ramin Yosian, who are alleged principals of KC Jewelry Inc.

He claims Youssain and Yosian use KC Jewelry as nothing but a sham to avoid personal civil liability, and that therefore the two principals should be held personally liable for the relief Greenbaum is seeking.

He also claims that Modern Jewelry Inc., which runs the retail store where he bought the ring at issue, has been acting in concert with KC Jewelry, Youssain and Yosian to sell jewelry with overstated diamond weights.

Greenbaum’s KC Jewelry class action lawsuit raises claims under California’s Unfair Competition Law, the California False Advertising Law, the Consumer Legal Remedies Act, and common law claims for fraud, negligent misrepresentation, and unjust enrichment.

Greenbaum proposes to represent a plaintiff Class consisting of all persons in the U.S. who after Sept. 1, 2012 purchased from the defendants one or more pieces of jewelry whose actual weight was less than the weight indicated on its label by more than 1/100th of a carat.

He seeks an award of restitution and disgorgement of profits gained by the defendants from their allegedly unlawful behavior, plus court costs, attorney’s fees, and pre- and post-judgment interest. He also seeks an injunction barring the defendants from violating consumer protection laws as described.

Greenbaum is represented by attorney Keith L. Altman.

The KC Jewelry Mislabeled Diamonds Class Action Lawsuit is Greenbaum v. KC Jewelry Inc., et al., Case No. 2:16-cv-06845, in the U.S. District Court for the Central District of California.