Two Israeli firms, E.Y. Orot Assets and Omega Eco Diamonds, have filed a $5 million lawsuit against Diamond Foundry, accusing the company of failing to comply with an Israeli court judgment. The lawsuit, filed on June 26 in California, claims that a 2020 contract required a $2.5 million down payment for goods from Diamond Foundry, but disagreements over the diamond quality led to complications.
After a dispute over the color quality of the supplied diamonds, Orot and Omega sued Diamond Foundry in 2022 for the unused portion of their payment plus damages. Diamond Foundry initially failed to respond, resulting in a default judgment in favor of the Israeli companies. Though Diamond Foundry later sought to overturn the judgment, the court required it to deposit 3 million shekels ($810,000) as a condition, which Diamond Foundry did not fulfill.
The Israeli companies are now seeking enforcement of the default judgment in the U.S. Diamond Foundry’s attorney did not comment on the matter.