Loblaw and its parent company George Weston say they have agreed to pay $500 million to settle a class action lawsuit over their involvement in a bread price-fixing scheme.
The class action was filed against a group of companies including Loblaw and Weston, Metro, Walmart Canada, Giant Tiger and Sobeys, as well as its owner Empire.
The plaintiffs allege that these companies participated in an industry-wide price-fixing conspiracy that lasted 14 years between 2001 and 2015, which led to artificially increased prices for packaged bread.
George Weston will pay $247.5 million in cash, while Loblaw will pay $252.5 million, consisting of $156.5 million in cash and a credit for $96 million previously paid to customers by Loblaw under the Loblaw Card program.
Loblaw Chairman Galen Weston, who is also chairman and CEO of George Weston, apologized on behalf of the companies and said “this situation should never have happened.”
“Reaching a settlement in this case was the right thing to do in response to a past practice that contravened our values and ethical standards,” he added.
Lawyers representing the plaintiffs say the payment, subject to court approval, is the largest antitrust settlement in Canadian history.
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