George Weston, Loblaw settle class-action lawsuits over bread price-fixing scheme
Loblaw Cos. Ltd. and parent company George Weston Ltd. will pay $500 million to settle the class-action lawsuits against them for their role in a decade-old bread price-fixing scheme.
It's the largest anti-trust settlement in Canadian history.
The industry-wide price-fixing arrangement took place between 2001 and 2015 involving certain packaged bread products.
George Weston will pay $247.5 million in cash, and Loblaw will pay $252.5 million.
Loblaw’s portion is made up of $156.5 million in cash and credit for $96 million previously paid to customers under the Loblaw Card program.
The grocer reported net earnings of $457 million Thursday (July 25), down $51 million or 10% year-over-year due to charges related to the settlement.
Loblaw said it was hit with $121 million in charges in the second quarter as a result of the agreement.
"Canadians count on Loblaw to provide great value and we seek to meet their needs and earn their trust whenever and wherever they choose to shop with us," said Per Bank, president and CEO of Loblaw, in a release. "We will continue to work hard to deliver on that commitment."
There are still ongoing class actions against Canada Bread, Sobeys, Metro, Wal-Mart Canada, and Giant Tiger over the industry-wide conspiracy.
In June 2023, Canada Bread was fined $50 million after it plead guilty to four counts of price-fixing related to packaged bread products under the Competition Act.
The settlement figure was negotiated with the plaintiffs' lawyers in a mediation presided over by the chief justice of the Ontario Superior Court of Justice.
Funds will be distributed to eligible class members in accordance with a plan of distribution to be approved by the courts.
"Tthe settlement provides access to evidence to be used in pursuing the case against the remaining defendants," said Jim Orr, partner, Orr Taylor LLP, in a statement. "The expectation is that this will result in further significant monetary recovery for Canadian consumers."
Orr Taylor LLP is one of the firms representing the plaintiffs, as well as Strosberg Wingfield Sasso LLP, Renno & Vathilakis Inc., LPC Avocats, CFM Lawyers LLP and Boudreau Law.
