Zales Deceptive Diamond Warranty Class Action Survives Dismissal

Signet Jewelers Ltd. subsidiary Zale Delaware Inc. can’t escape a class action alleging it deceptively markets its diamond warranty, a federal court said June 14.

The complaint sufficiently alleges that representations made by Zales employees when customers buy jewelry are likely to mislead reasonable consumers, Judge M. James Lorenz wrote for the U.S. District Court for the Southern District of California.

The court also rebuffed the company’s motion to strike the class allegations as premature.

Gordon Henry Lovette bought a diamond ring from Zales that came with a lifetime warranty for repair and replacement of the diamond. The warranty required ...