According to the March 17 Coin World (page 4), NGC has settled its lawsuit regarding coins it designated as "First Strikes". A collector sued NGC after buying "First Strikes" bullion coins thinking that they were, under the traditional definition of "First Strike", the first coin or one of the first few coins struck from new dies. The collector later discovered that NGC defined "First Strikes" as coins that were shipped by the Mint during the first month after the release of the coins. The coin holders did not define "First Strikes", however NGC said its definition was on their web site. The litigants agreed to mediation and came to the following terms: NGC admits no wrongdoing. NGC will no longer designate coins as "First Strikes" or "First Strike" unless the coin was "struck as part of a ceremonial striking by the US Mint on the first day of minting". NGC will "establish a $650,000 settlement fund to be distributed, net of attorneys' fees and expenses plus the class representation award, to the ANA for the purpose of educating the public about coins and terminology". The ANA has received $447,095. (So, as usual, the lawyers are really the big winners). ANA plans to use the money to publish a consumer awareness booklet that will contain consumer tips, basic coin grading and coin authentication information and conservation tips. It will also explain the minting process and clearly explain what "First Stikes" are. These booklets will be given to attendees of ANA conventions, ANA dealers and their customers, ANA coin club show attendees and new ANA members. The booklet will also be available on-line. ANA will also educate students of Summer Seminar coin grading couses exactly what "First Strikes" are and what they are not. Meanwhile, NGC will remain the Official Grading Service of the ANA.
And screw all the people who actually paid for this First Strike designation!!!! I never paid for such a designation but when a decision like this basically removes any value from the designation, you would think that those who paid for it would be entitled to a refund. Heck, they should have at least done the minimal coupon you see in these types of settlements which is to send out a coupon for a free grade/slab for every first strike designation that was paid for.
This was one of the biggest scams of the last year and sadly was devised by those who you would think would be above any such scandalous activities. I never bought any of these as it just seemed stupid, but I saw many ebay auctions selling these at high premiums over other similar coins. Unfortunately it all boils down to the gullibility of the general public and those in a position of knowledge/authority taking advantage of that lack of knowledge.
NGC is still issuing coins designated "Early Releases", which is technically true, but equally deceptive since those coins are not any different from late releases. The only way to put a stop to this is to boycott coins with these designations. I'd appreciate opinions as to why PCGS is permitted to persist with the First Strike bull**** with First Spouse coins.
Well I thought "First Strike" was a rediculous scam from the beginning... this only proves it... even though techically they admitted no wrongdoing. Perhaps other grading companies will follow suit if they thing this will cause people no to buy into the "First Strike" myth. It always seemed silly to me anyway... dies are changed constantly and you can have a well struck coin on the 1 millionth strike just as easily as the first (and a perfect strike is hardly guaranteed, even on the first, for that matter). All that should matter is the condition of the coin, regardless whether it was struck first, millionth, or billionth. And I also think it's rediculous to treat some PR stunt by the Mint in the guise of a "First Strike ceremony" as if it somehow imparts additional value on the coin. I find it hard to feel sympathy for anyone who was dumb enough to buy "First Strike" coins... but if there was a settlement against a company that used it, I think it only fair that they're entitled to a piece of it, or at least a refund of whatever premium was apid for them above what they would have paid for the same coin in the same holder without the designation.
No the other TPG's aren't or at least PCGS isn't. This is old news. It may have just shown up in Coin World but the settlement was reached well over a month ago and the payment to the ANA happened at least two weeks ago. It has already been discussed on the PCGS and NGC forums
