Lazare Kaplan International anticipates that its fiscal 2012 revenue will reflect a 23 percent year on year decline at $105.7 million for the 12 months that ended on May 31. The decrease in sales primarily reflected a drop in rough trading volume, according to the company's statement to the Securities and Exchange Commission (SEC). Uncertain economic conditions continue to impact the the diamond and jewelry industry, according to the group.

In addition, Lazare Kaplan stated that it continues legal proceedings with Antwerp Diamond Bank and KBC Bank and, thus, these issues have extended material uncertainties the company is attempting to resolve. As it has done now since 2009, Lazare Kaplan filed its notice with the SEC that 2012 fiscal results would be late. The company has been unable to finalize its full year and quarterly financial statements for 2012, 2011, 2010 and 2009 due to material uncertainties, but most of which have been resolved in the past year.

But Lazare Kaplan noted that one unresolved issue dates back to March 2010 when Antwerp Diamond Bank commenced litigation against the firm for a $45 million credit facility. Lazare Kaplan denies that it owes any amount to that bank. Belgian proceedings, originally scheduled to be heard on October 7, 2011 and rescheduled for September 28, 2012, are currently scheduled, subject to final approval of the Belgian court, to begin on March 22, 2013.

On December 23, 2011, Lazare Kaplan filed suit against Antwerp Diamond Bank and KBC Bank under Racketeer Influenced and Corrupt Organizations Act (RICO) and state law and is seeking, among other things, in excess of $500 million in damages that could be trebled under RICO. The lawsuit alleged that the banks engaged in money laundering and other illegal activity that includes the theft of more than $135 million from the sales of diamonds belonging to Lazare Kaplan and its affiliates.

Both banks have offices in New York and conduct licensed banking operations in the United States. The diamond firm filed the RICO lawsuit in an effort to resolve this final material uncertainty. The banks sought motions to dismiss Lazare Kaplan's suit in April and a decision is expected soon.

Lazare Kaplan also stated that company director Lucien Burstein passed away on August 12 after having served the firm since 1984. Burstein was on the audit and compensation committees of the board of directors, as well as its secretary and corporate counsel.