Jury Rules Against Blue Nile in $60.1 Million Lawsuit That Sought to Stifle Consumer-Friendly Price Comparisons

Jury Rules Against Blue Nile in $60.1 Million Lawsuit That Sought to Stifle
Consumer-Friendly Price Comparisons

SEATTLE, Nov. 2 /PRNewswire/ -- Following a six-day trial, a federal jury here
dismissed Blue Nile Inc.'s $60.1 million claim against The Yehuda Diamond
Company, reaffirming Yehuda Diamond's right to compare the prices of its
clarity enhanced diamonds to the untreated diamonds sold by online retailer
Blue Nile.

Yehuda Diamond, based in New York, has earned widespread industry and consumer
loyalty for its successful competition with Blue Nile and other online
jewelers, favoring consumers not only with lower prices but also with
unsurpassed expert face-to-face service and full Federal Trade
Commission-compliant disclosure.

The suit [No. C-07-2017 TSZ], brought by Blue Nile and heard last month in
U.S. District Court for the Western District of Washington, involved Blue
Nile's efforts to prevent Yehuda Diamond from comparing the price and
appearance of its clarity enhanced diamonds to those natural untreated
diamonds sold by Blue Nile.

Yehuda Diamond has consistently contended, even before Blue Nile filed the
lawsuit against it in December 2007, that Yehuda Diamond's price comparisons
are in the best interest of consumers. After 4-1/2 hours of deliberations,
the jury agreed, dismissing both Blue Nile's federal and state claims that
Yehuda Diamond had engaged in false or misleading advertising.

Blue Nile, which has brought multiple lawsuits against smaller competitors
over the past decade, had petitioned the jury to award it exemplary damages of
$60,161,834.64, based on alleged actual damages of $20,053,944.88.

"This is a momentous victory for all consumers and for free-market
competition," says Dror Yehuda, president of Yehuda Diamonds.

"In essence, the jury told Blue Nile that it can't use its massive size and
legal muscle to prevent consumers from learning about lower-priced, quality
alternatives to Blue Nile diamonds," explains Mr. Yehuda. "In recent years,
Blue Nile has preferred to fight its competitors in the courtroom than in the
marketplace."

The jury's decision clears the path for Yehuda Diamond to continue to inform
consumers of how much they stand to save by shopping at Yehuda Diamond
authorized retailers, who offer competitive prices along with personalized,
expert, face-to-face customer service for its clarity enhanced diamonds. By
comparison, Blue Nile untreated diamonds are frequently higher-priced and Blue
Nile bypasses the retail distribution chain altogether.

Moreover, Mr. Yehuda vowed that his company will continue to press its own
lawsuit against Blue Nile [Court Case #08-CV-9751] filed in November 2008 in
U.S. District Court for the Southern District of New York.

In that ongoing case, Yehuda Diamond contends that consumers who purchased
rubies, emeralds, sapphires or jewelry containing those stones from Blue Nile
were not informed that the gemstones had been treated to enhance their
appearance.

As Mr. Yehuda previously noted: "We believe Blue Nile is deliberately
misleading consumers about the quality of some of the gemstones it sells" in
defiance of best industry recommend practices. "When a giant retailer such as
Blue Nile does not do right by consumers, it taints our entire industry."

Yehuda Diamond has repeatedly endorsed full disclosure to consumers of any and
all fillings and treatments made to valuable gemstones, including diamonds.
Yehuda Diamond goes to great lengths to inform consumers of its own
proprietary clarity enhanced diamond enhancement process, including prominent
videos and text on its popular www.yehuda.com web site that illustrate the
Yehuda Diamond proprietary technique.

Testifying at trial in Seattle, Mr. Yehuda cited Blue Nile's grading of its
treated gemstones, such as rubies and emeralds, to rebut Blue Nile's
contention that Yehuda Diamond acted improperly in grading its clarity
enhanced diamonds after enhancement.

"Clearly, the jury understood the hypocrisy of Blue Nile saying that it is
okay for Blue Nile to grade in this manner, but not okay for Yehuda Diamond,"
Mr. Yehuda noted after the verdict was announced. "More importantly, Yehuda
Diamond is upfront and straightforward in telling our customers about our
grading process, while Blue Nile keeps so many of its customers in the
complete dark."

Mr. Yehuda said that given the jury's rulings in support of Yehuda Diamond, he
has asked his attorneys to petition the judge in the case, the Honorable
Thomas S. Zilly, to require Blue Nile to pay Yehuda Diamond's legal fees.
Yehuda Diamond is represented by Pearl Cohen Zedek Latzer LLP, a
Manhattan-based law firm.

Full details concerning the price-advantages, brilliance and other
characteristics of Yehuda clarity enhanced diamonds can be found at
www.yehuda.com. In addition, the Yehuda Diamond web site explains why it
encourages all consumers to visit an affiliated local jeweler and personally
examine the diamonds before they buy - without cost, obligation or pressure.

For additional information, contact Dror Yehuda of Yehuda Diamond at
212-221-5985.

SOURCE The Yehuda Diamond Company

Dror Yehuda of Yehuda Diamond, +1-212-221-5985