NEW YORK, May 20 /PRNewswire-FirstCall/ -- Lazare Kaplan
International Inc. (Amex: LKI) ("Lazare
Kaplan") announced today that in a federal lawsuit filed on
Monday, May 17, 2010, it sued various
Lloyds of London syndicates and European insurers for $640 million in damages arising out of the
disappearance of diamonds that were insured by the defendants,
including consequential damages. The lawsuit alleges that the
insurers breached two "all risk" New
York property insurance policies, and an Agreement for
Interim Payment under which the insurers made a non-refundable
interim payment of $28 million to
Lazare Kaplan in January of this
year. After making the $28
million payment, the insurers abruptly reversed course and
refused to acknowledge coverage or to pay any covered losses under
the policies. The complaint alleges, among other things, that the
insurers, which also issued separate policies to Lazare Kaplan under English law, created a
virtual coverage "whipsaw" by denying coverage under the English
policies on the ground that Lazare
Kaplan does not have an insurable interest in the largest
portion of the property at issue while at the very same time
asserting under the New York
policies that there is no coverage because Lazare Kaplan insured the same property under
the English policies. Lazare Kaplan expects to conduct
broad-ranging discovery around the world in the course of the
lawsuit.
Lazare Kaplan International Inc. sells its diamonds and jewelry
products through a worldwide distribution network. The
Company is noted for its ideal cut diamonds, which it markets
internationally under the brand name, Lazare Diamonds®.
Except for historical information contained herein, the
statements in this release are forward-looking and made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve known and
unknown risks and uncertainties which may cause the Company's
actual results in future periods to differ materially from
forecasted results. Those risks include the ability to resolve the
lawsuit discussed above, a softening of retailer or consumer
acceptance of, or demand for, the Company's products, pricing
pressures, adequate supply of rough diamonds, liquidity, and other
competitive factors. The information contained in this press
release is accurate only as of the date issued. Investors should
not assume that the statements made in these documents remain
operative at a later time. Lazare Kaplan International Inc.
undertakes no obligation to update any information contained in
this news release.
SOURCE Lazare Kaplan International Inc.