A significant chapter in one of Canada’s largest class-action lawsuits has come to a close, as an Ontario judge has given the green light to a $500-million settlement resolving allegations of price-fixing in the bread industry involving Loblaw Companies Ltd. and its parent firm, George Weston Ltd.
The settlement,which was reached last year, resolves claims that the companies participated in a coordinated effort to artificially inflate the price of packaged bread over a span of two decades. According to a statement from the court, Justice Ed Morgan described the agreement as “excellent, fair, and in the best interest of class members.”
Per a statement included in the judge’s written decision, Loblaw and George Weston will contribute a total of $404 million to the settlement fund. The remainder—$96 million—relates to a gift card program first launched by Loblaw in 2017, which was intended as an apology for the company’s role in the alleged price-fixing scheme that stretched back to 2001.
The court outlined that once legal and administrative costs are deducted, approximately 78 per cent of the net settlement will be distributed to eligible residents outside of Quebec, while 22 per cent will go to claimants within the province. Canadians eligible for compensation include individuals and businesses who purchased packaged bread for personal consumption or resale between January 2001 and December 2021.
Read more: Loblaw and George Weston Settle $500M Bread Price-Fixing Lawsuit
The case emerged from long-standing allegations that several major grocery chains and bakery wholesalers engaged in collusion to inflate bread prices—a staple item in most households—causing widespread consumer impact. Loblaw and George Weston publicly admitted their involvement in the practice in 2017 and have cooperated with investigations since.
According to a statement from the plaintiffs’ legal team, the settlement ensures meaningful restitution for millions of affected consumers and brings an important measure of accountability to the corporate players involved.
Source: Global News
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