Largest Anti-Trust Settlement in Canadian
History
TORONTO and MONTREAL, July 25,
2024 /CNW/ - Strosberg Wingfield Sasso LLP, Orr
Taylor LLP, Renno & Vathilakis Inc., LPC Avocats, CFM Lawyers
LLP, and Boudreau Law announced
today, on behalf of the plaintiffs, that they have entered into
binding minutes of settlement with George Weston Limited ("George
Weston") and Loblaw Companies Limited ("Loblaw") 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 (the "Settlement
Payment"), 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. Further details will be available when court approval is
sought, which will be before the end of the year.
For further information please visit:
English language website:
https://class-action.swslitigation.com/class-actions/packaged-bread/
French language website: www.lpclex.com/pain
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content:https://www.prnewswire.com/news-releases/500m-settlement-reached-with-george-weston-limited-and-loblaw-companies-limited-in-packaged-bread-price-fixing-class-action-302206199.html
SOURCE Strosberg Wingfield Sasso LLP