A Canadian judge has finalized a landmark $500 million settlement that resolves allegations against Loblaw Companies Ltd. (TSX: L) and George Weston Ltd. (TSX: WN) over bread price-fixing.
Ontario Superior Court Judge Ed Morgan approved the agreement May 7, describing the terms as representing class members’ best interests and calling the outcome “excellent” and “fair.” The deal sets a new record as Canada’s largest antitrust settlement.
Plaintiffs claimed major retailers coordinated efforts to artificially raise bread costs between 2001 and 2015. Competition Bureau findings indicated the conspiracy added at least $1.50 to each loaf’s price, impacting approximately 20 million Canadians.
Related: Loblaw, George Weston Agree to Massive $500M Settlement Over Bread Price-Fixing Case
The two companies will provide $404 million in fresh payments, supplemented by $96 million already distributed through gift cards issued in 2018-2019 after the firms initially disclosed their involvement.
Qualifying consumers who bought bread between January 2001 and December 2021 without receiving prior gift card compensation can receive payments up to $25. After legal expenses, approximately 78% of funds will go to customers outside Quebec, with Quebec residents receiving 22%.
Related: George Weston Reports Q2 Earnings Drop Following Bread Price-Fixing Settlement
Opposition to the deal proved minimal. Morgan noted just four formal objections and 475 people opting out among millions of potential recipients. The judge found objectors offered “no principled grounds” beyond seeking larger payments.
“We sincerely apologize for involvement in the arrangement,” Loblaw said in a 2024 statement, adding the company has “taken a number of steps since that time to ensure this doesn’t happen again.”
Both companies reported their role to Canada’s Competition Bureau in 2015, earning prosecution immunity through cooperation. Details became public in 2017.
Quebec courts will review the settlement June 16. Payment processing cannot begin until both provinces approve the agreement.
Legal battles persist against additional retailers including Canada Bread, Sobeys, Metro, Walmart Canada and Giant Tiger. Canada Bread received a $50 million penalty in 2023 following guilty pleas to price-fixing violations.
Under settlement terms, Loblaw and George Weston must assist ongoing prosecution efforts by sharing internal documents and providing witness testimony.
From earlier: How Loblaws’ Galen Weston Doubled His Wealth At Your Expense
The Competition Bureau launched its investigation in 2016 after receiving the companies’ voluntary disclosure about what regulators described as a 14-year scheme targeting Canadian consumers.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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