Galatea Ltd., a wholly-owned subsidiary of Sarine Technologies Ltd, is taking legal action against a manufacturer in Surat, India, for their allegedly fraudulent use of Sarine's Galaxy® inclusion mapping technology and systems, the company said in a statement. Galatea claims the company has been practising deliberate under-reporting of rough stone weights and underpayment of amounts owed to Galatea for the scanning of the rough stones.
"While auditing the manufacturer’s usage of its Galaxy system, Galatea discerned significant discrepancies over an extended period between the weights of rough stones processed and those actually reported to Galatea", the company writes. "This under-reporting resulted in an underpayment of the amounts owed to Galatea for the use of the Galaxy system. After an internal in-depth analysis, Galatea determined that such under-reporting was clearly a deliberate act to misrepresent the stone weights processed and the resultant sums payable to Galatea. Galatea also has incontrovertible evidence to demonstrate that the under-reporting was done through the illegal manipulation of the Galaxy software."
They added, "When confronted by Galatea, the manufacturer’s proprietor claimed that a senior manager had been responsible for the software manipulation, which led to the fraud. Galatea intends to initiate appropriate legal action against said manufacturer and its owners, officers, employees, etc. who were involved in such unlawful and illegal activities, seeking compensation for the damages caused, and will take additional actions in the appropriate Indian and international diamond industry and trade centers to expose these fraudulent activities." David Block, Chief Executive Officer of Sarine Group, said, “The Sarine Group is taking proactive and aggressive actions aimed at protecting our intellectual property rights, including against manufacturers, who are engaged in the use of infringing products and services or any other fraudulent use of our technologies."