Loblaw Cos. Ltd. and its parent company George Weston Ltd. have executed a settlement over a pair of class-action lawsuits related to an alleged industry-wide scheme to fix the price of bread.
The $500 million settlement was announced last year. The lawyers involved in the case say the agreement was executed on Jan. 31, though it is still subject to court approval in Ontario and Quebec.
Loblaw and George Weston are paying a combined $404 million, with the remaining $96 million accounted for through Loblaw's gift card program announced in 2017.
The class-action lawsuits allege the defendants conspired to fix the price of packaged bread in Canada.
The lawyers say the settlement also provides access to information that will be used in continuing the cases against the remaining defendants: Canada Bread, Sobeys, Metro, Walmart Canada and Giant Tiger.
This includes a wide swath of documents relating to price increases for bread between 2001 and 2016, as well as sales data. Under the co-operation agreement, Loblaw and George Weston also agree to provide the plaintiffs with assistance in understanding the documents and data, will make their lawyers available to the plaintiffs, and will help identify and produce witnesses.
"This is significant for us, and it's really going to help us in the ongoing litigation," said Jay Strosberg, managing partner at Strosberg Wingfield Sasso LLP, which represents the plaintiffs in the Ontario lawsuit.
Loblaw and George Weston are the only companies that have settled in the class-action lawsuits. They previously admitted their participation in the alleged scheme as part of the Competition Bureau's ongoing investigation, receiving immunity as a result.
Canada Bread has pleaded guilty to four counts of price-fixing in the Competition Bureau investigation but, like the other class-action defendants that remain, denies participating in a wide-ranging conspiracy.
Metro and Sobeys have accused Loblaw and George Weston of conspiring to implicate them in the alleged scheme. The two companies denied the allegations.
The Competition Bureau began investigating alleged bread price-fixing in January 2016. It said at least $1.50 was added to the price of a loaf of bread due to the alleged 14-year conspiracy.
Twenty-two per cent of the settlement funds, minus court-approved expenses, will be distributed to eligible class members in Quebec. The rest will go to eligible members outside Quebec.
"This resolution not only acknowledges the harm caused, but it also provides the relief Canadian consumers deserve," said Joey Zukran, founder of LPC Avocats, which is leading the Quebec class action, in a press release.
Individuals who bought packaged bread in the province between Jan. 1, 2001 and Dec. 31, 2021, are automatically included in either the Quebec class action — for Quebec residents who bought bread in Quebec — or the Ontario class action, for everyone else.
The deadline to opt out of the Quebec settlement is May 30, while the deadline to opt out of the Ontario settlement is April 25.
The deadline to object to or comment on the settlement is May 30.
This report by The Canadian Press was first published March 11, 2025.
Companies in this story: (TSX:L, TSX:WN)
Rosa Saba, The Canadian Press
