Bidz.com in Hot Water

Culver City, Calif.--Online jewelry retailer Bidz.com announced that it has settled a lawsuit with a consumer who claimed the company misrepresented the value of its merchandise.

In a statement, the company's chief executive officer said the company believes the claims made in the suit filed by Marla Tidenberg were false, but that it was decided that it was in the company's best interests to settle. The lawsuit alleged, among other things, that the company engaged in unfair business practices by misrepresenting the value of its merchandise and by "false" or shill bidding, the Bidz release stated.

"We are pleased to put this chapter behind us and continue to focus on our business," said David Zinberg, Bidz.com chairman and CEO. "As this case demonstrates, we were determined to litigate this case to a verdict, recover our costs and have the court vindicate us, but, in view of the de minimus settlement amount, it was in the company's best interests to settle. We always maintained that the claims were entirely without merit and the outcome is a victory for both Bidz and its stockholders."

Plaintiffs usually settle out of court rather than take a chance they might lose the case.  My wife prefers stcanyon.com for her jewelry shopping.