$500M settlement reached with George Weston Ltd. and Loblaw Companies Ltd. in bread price-fixing scandal

TORONTO and MONTREAL — Strosberg Wingfield Sasso LLP, Orr Taylor LLP, Renno & Vathilakis Inc., LPC Avocats, CFM Lawyers LLP, and Boudreau Law announced that they have entered into binding minutes of settlement with George Weston Limited and Loblaw Companies Limited to settle George Weston and Loblaw’s involvement in nationwide class action lawsuits related to industry-wide price fixing for certain packaged bread products. The plaintiffs allege that the defendants participated in a 14-year industry-wide price fixing conspiracy leading to an artificial increase in packaged bread prices. The $500M settlement is the largest anti-trust settlement in Canadian history. The settlement is subject to finalizing a formal settlement agreement between the parties and court approval.

The parties have agreed to a settlement amount of $500 million that will involve a cash payment by George Weston and Loblaw of $404 million, with $96 million having already been paid by Loblaw through the previously administered Loblaw Card program.

Class counsel will now prepare for trial in the ongoing class actions against Canada Bread, Sobeys, Metro, Wal-Mart Canada, and Giant Tiger whom the plaintiffs allege were also involved in the industry-wide conspiracy. In June 2023, Canada Bread was fined $50 million after it plead guilty to four counts of price-fixing related to packaged bread products under the Competition Act.

“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, Strosberg Wingfield Sasso LLP.

“Importantly the settlement provides access to evidence to be used in pursuing the case against the remaining defendants,” said Jim Orr, Partner, Orr Taylor LLP. “The expectation is that this will result in further significant monetary recovery for Canadian consumers.”

“Following extensive negotiations, we are more than confident that this significant monetary settlement represents a very fair outcome for Canadians,” said Michael Vathilakis, Co-founding Partner, Renno & Vathilakis Inc.

“This resolution not only acknowledges the harm caused, but it also provides the relief Canadian consumers deserve,” said Joey Zukran, Founder, LPC Avocats.

The Settlement Payment, less court-approved expenses, will be distributed to eligible class members in accordance with a plan of distribution, to be approved by the courts. If the settlement is approved, it will resolve all the plaintiffs’ claims against Loblaw and George Weston relating to this matter.