Loblaw, George Weston to settle class action over bread price-fixing for $500 million

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Loblaw, George Weston to settle class action over bread price-fixing for $500 million
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Loblaw Cos. Ltd. and its parent company George Weston Ltd. say they have agreed to pay $500-million to settle a class-action lawsuit regarding their involvement in an alleged bread price-fixing scheme.

The class-action case was brought against a group of companies that includes Loblaw and the Weston companies, Metro, Walmart Canada, Giant Tiger and Sobeys and its owner Empire Co. Ltd.

The plaintiffs allege those companies participated in a 14-year industry-wide price-fixing conspiracy between 2001 and 2015 leading to an artificial increase in packaged bread prices. George Weston will pay $247.5 million in cash, while Loblaw will pay $252.5-million, made up of $156.5-million in cash and credit for $96-million previously paid to customers by Loblaw under the Loblaw Card program.

Loblaw chairman Galen Weston, who is also chairman and chief executive of George Weston, apologized on behalf of the companies and says"this behaviour should never have happened." Lawyers representing the plaintiffs say the payout, subject to court approval, is the largest antitrust settlement in Canadian history.The Canadian Press

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