Loblaw, Parent George Weston to Pay C$500 Million to Settle Price-Fixing Suits

By Robb M. Stewart

Canadian grocery giant Loblaw Cos. and its parent company have agreed to pay 500 million Canadian dollars, the equivalent of about U.S.$362 million, for their role in a decades-old bread price-fixing arrangement.

George Weston and its majority-owned Loblaw arm said Thursday they agreed to settle nationwide class action lawsuits against them for their role in industry-wide price fixing between 2001 and 2015 that involved certain packaged bread products. In a statement, the companies apologized for their role in the arrangement.

The pair will in total pay C$404 million in cash, in addition to C$96 million already paid out through a previous Loblaw card program.

The settlement was negotiated with the plaintiffs' lawyers in a mediation presided over by the chief justice of the Ontario Superior Court of Justice. It remains subject to the finalization of a binding settlement deal.

The companies said that when they learned of the bread price-fixing arrangement in March 2015, they immediately reported it to the country's Competition Bureau. In response, the companies said they took a number of steps, including overhauling how pricing was managed and enhancing their compliance programs. The measures included establishing an independent compliance office, reporting to the Loblaw board.

Founded in 1882, George Weston controls two operating arms, Loblaw and Choice Properties Real Estate Investment Trust. Loblaw has more than 2,400 corporate and franchised retail locations in Canada, as well as pharmacies that include the Shoppers Drug Mart chain.

George Weston agreed to pay C$247.5 million in cash and Loblaw will pay C$156.5 million on top of credit for the amount previously paid to customers.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

July 25, 2024 07:21 ET (11:21 GMT)

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