Loblaw, George Weston to pay $500M for bread price-fixing scheme in record antitrust settlement

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

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

The plaintiffs allege those companies participated in a 14-year industry-wide price-fixing conspiracy between 2001 and 2015, leading to an artificial increase in packaged bread prices.

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

Loblaw chair Galen Weston, who is also chair and chief executive of George Weston, apologized on behalf of the companies.

«This behaviour should never have happened,» said Weston. «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.»

Metro, Sobeys fight allegations

Lawyers representing the plaintiffs say the payout, subject to court approval, is the largest antitrust 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 of Strosberg Wingfield Sasso LLP, in a separate news release.

The lawyers said their focus will now shift to preparing for trial in the ongoing class actions against Canada