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GemEx Systems: Zale Corporation and GS Laboratories agree to behavior changes to settle lawsuit with GemEx Systems, Inc.
5/30/2012

From: GemEx Systems
6040 W. Executive Dr.
Mequon, WI 53092

Contact: Randall Wagner, GemEx Systems,
262-242-1111,
or Glenn Cassens, 262-242-1111
or JordanFox, 414-352-2645

(Mequon, WI, May 30, 2012) – Zale Corporation has agreed to make behavioral changes in a pre-trial settlement of false advertising claims in the case of GemEx Systems, Inc., vs. Zale Delaware, Inc., Zale Corporation and GS Laboratories of America, Inc. filed on December 8, 2008. GemEx is based in Mequon, WI.

Zale Corporation and GS Laboratories have agreed to change their behavior regarding diamonds and certificates in their stores, including the Celebration Diamond. The defendants agree to cease and hereafter refrain from making characterizations or statements that would indicate that a non-GemEx certificate reflects an actual measurement of light when it does not. The defendants will no longer suggest that ray-tracing technologies measure actual light as opposed to making a mathematical prediction of what might be observed.

Zale Corporation and GS Laboratories will also cease the use of language, images, characterizations or statements suggesting that reports or certificates based on ray-tracing technologies measure, do, show or are the same thing as GemEx certificates.

The defendants will also cease the use of reports or certificates utilizing a bar chart depicting a measurement of “brilliance,” “fire,” and “sparkle” or “scintillation” in a format similar to the arrangement of a GemEx Light Performance® Certificate. This includes mimicking the presentation of a GemEx certificate.

Randall M. Wagner, GemEx CEO and inventor of the GemEx Light Performance standard, stated that he is satisfied with the settlement and that the agreed behavioral changes were all GemEx had hoped to gain in filing the Lanham Act claims against Zale and GS Laboratories. Mr. Wagner stated his only regret is that it took filing in public court to get the former management of Zale Corporation to address the importance of this issue to the diamond industry and consumers.

In addition to behavior changes, Zale Corporation and GS Laboratories have agreed to pay GemEx a settlement fee.

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About GemEx:

GemEx® Systems, Mequon, WI, is the global leader in diamond Brilliance, Fire & Sparkle certification. GemEx pioneered the concept of scientifically measuring Light Performance® certification of diamonds, and consumers have embraced this method of diamond evaluation as demonstrated by the great success that GemEx customers have had selling diamonds with GemEx Certificates. http://www.GemEx.com
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