Unique Designs, which calls itself the “largest wholesale supplier of fine jewelry in the United States,” is suing Signet over refunds given to customers who were sold jewelry made with glass stones instead of lab-created gems.

According to a suit filed Nov. 6 in U.S. District Court in Ohio, Signet had informed Unique Designs in 2020 that certain items, mass-produced for Unique by a third party, contained “artificial gemstones” composed of glass rather than the expected nanocrystal. Signet gave all customers who had bought the jewelry a full refund as well as a $100 Signet gift card, and allowed them to keep the piece they had purchased, the complaint says. (Unique terminated its arrangement with the overseas supplier of the jewelry in question when the problem was discovered.)

Together, the refunds and gift cards cost Signet $1.6 million, which it charged to Unique, according to the suit. Unique contends it would have been better to give customers replacement items with the proper lab-created gems, and that would have cost Unique $200,000.

The complaint says that Signet’s actions “violated the terms of the [two parties’ Master Supply Agreement], which required Signet to either reject and return items to Unique at its expense, or to pay for the items sold.” Unique claims Signet owes it $2.2 million—including $1.8 million for “unauthorized chargebacks,” $350,000 worth of unreturned jewelry samples and consignment items, and $40,000 in open receivables.

“It would be unjust for Signet not to return the items or pay for [them],” says the complaint.

Unique is charging breach of contract, owed money, and several other counts, and seeks a minimum of $2.2 million from Signet.

Both companies declined comment, with a Signet spokesperson citing pending litigation.

(Photo: Getty Images)

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