Loblaw, George Weston to settle class action over bread price-fixing for $500M

CITYnews halifax / By Lucas Casaletto, The Canadian Press

Loblaw Cos. Ltd. and its parent company, George Weston Ltd., have agreed to pay $500 million to settle a class-action lawsuit regarding their involvement in an alleged bread price-fixing scheme.

The class-action case was brought against a group of companies, including Loblaw and the Weston companies, Metro, Walmart Canada, Giant Tiger, and Sobeys, and its owner, Empire Co. Ltd.

The plaintiffs allege that those companies participated in a 14-year industry-wide price-fixing conspiracy between 2001 and 2015, which artificially increased packaged bread prices.

George Weston will pay $247.5 million in cash, while Loblaw will pay $252.5 million, which includes $156.5 million in cash and credit for $96 million previously paid to customers by Loblaw under the Loblaw Card program.

Loblaw chairman Galen Weston, chairman and chief executive of George Weston, apologized on behalf of the companies.

“On behalf of the Weston group of companies, we are sorry for the price-fixing behaviour we discovered and self-reported in 2015,” the statement read.

“This behaviour should never have happened. We have the privilege of serving Canadians from coast to coast. That privilege needs to be earned each and every day. Reaching a settlement on this matter was the right thing to do in response to previous behaviour that did not meet our values and ethical standards.”

Galen Weston waits to appear as a witness at the Standing Committee on Agriculture and Agri-Food (AGRI) investigating food price inflation in Ottawa on March 8, 2023. THE CANADIAN PRESS/Spencer Colby

$500M settlement largest anti-trust settlement in Canadian history

In a statement, George Weston Ltd. said the companies “apologize to Canadians for their role in a decade-old, industry-wide bread price-fixing arrangement.”

Per Bank, President and Chief Executive Officer of Loblaw, said Canadians count on Loblaw to provide great value.

“We will continue to work hard to deliver on that commitment.”

Lawyers representing the plaintiffs say the payout, subject to court approval, is the largest anti-trust settlement in Canadian history.

“This is a significant milestone in Canadian class action history and sends a strong message that conduct that harms consumers will not be tolerated,” said Jay Strosberg, Managing Partner, Strosberg Wingfield Sasso LLP.

“Importantly, the settlement provides access to evidence to be used in pursuing the case against the remaining defendants,” said Jim Orr, Partner, Orr Taylor LLP. “The expectation is that this will result in further significant monetary recovery for Canadian consumers.”