Loblaw, parent agree to pay $500M to settle bread price-fixing lawsuit

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.

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 an alleged 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.

It alleges the defendants conspired to fix the price of packaged bread in Canada, and was filed on behalf of all residents of Canada who purchased packaged bread after Nov. 1, 2001, except for residents of Quebec and parties related to the defendants.

In a press release, George Weston said it would pay $247.5 million in cash, while Loblaw would 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 chairman Galen Weston, who is also chairman and chief executive of George Weston, said “this behaviour should never have happened.”

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

“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.”

Loblaw president and CEO Per Bank added the grocer would seek to “earn (Canadians’) trust whenever and wherever they choose to shop with us.”