Judge approves $500M settlement in Loblaw, George Weston bread price-fixing case

TORONTO — Some Canadian consumers could quickly obtain money from a class-action lawsuit that accused Loblaw Cos. Ltd. and its guardian firm George Weston Ltd. of participating in an industry-wide scheme to repair the worth of bread.

Ontario Superior Court docket Decide Ed Morgan permitted a $500-million settlement within the case on Might 7, saying the cash put ahead by the grocery firms was “an excellent and fair result for all concerned.”

“It is in the best interests of the class as a whole,” he stated in a written resolution. “In my view, it falls squarely within the zone of reasonableness.”

The settlement he permitted features a mixed $404 million to be paid by Loblaw and George Weston. The remaining $96 million is accounted for via a present card program Loblaw started in 2018 and ran via 2019 in hopes of constructing amends with clients who paid about $1.50 extra per loaf of bread.

As soon as authorized charges and different courtroom bills are paid, 78 per cent of the funds might be allotted to consumers in Ontario with the remaining quantity headed for folks in Quebec.

Clients who purchased bread between January 2001 and December 2021 and didn’t beforehand take a present card from Loblaw will finally obtain as much as $25.

If there’s nonetheless cash left over after that distribution, funds might be divided amongst anybody who claimed the reward card.

Morgan’s resolution ends one chapter in a saga that has lobbed allegations on the nation’s greatest grocers, together with Metro, Sobeys, Walmart Canada, Canada Bread and Large Tiger.

Whereas these gamers have denied their participation in an alleged scheme to co-ordinate the worth of bread again to 2001, Loblaw and George Weston advised the Competitors Bureau they had been a part of the follow in 2015. Their admission wasn’t publicized till 2017.

They then provided a $25 reward card to attempt to compensate clients, however consumers weren’t appeased and in December 2019, a Quebec class motion was filed towards them and the opposite grocers. A Quebec courtroom will hear arguments round whether or not to simply accept the Loblaw and George Weston settlement on June 16.

The Ontario class motion was filed by Strosberg Wingfield Sasso LLP in December 2021 however solely reached its $500 million settlement final yr.

“The parties do not have to do much to convince me that the litigation has been hard fought on all sides,” Decide Morgan stated in his resolution.

Requested for touch upon the settlement’s approval, Loblaw spokesperson Catherine Thomas pointed the Canadian Press to a 2024 assertion that stated, “we sincerely apologize” for involvement within the association and “have taken a number of steps since that time to ensure this doesn’t happen again.”

“We know we have more to do to regain the trust of our customers and we’re committed to doing that,” the assertion stated.

A George Weston spokesperson didn’t instantly reply to a request for remark.

The settlement they put ahead resolves all nationwide bread price-fixing claims they confronted or may face and contains assurances that they’ll co-operate with claims being pursued towards the remaining grocers who didn’t provide a settlement.

The provide Loblaw and George Weston made garnered 4 objections and 475 opt-outs, which Decide Morgan stated “are very small numbers in view of the estimated 20 million-plus class members.”

Nobody who objected to the settlement appeared in courtroom to clarify their views, however a overview of their written submissions confirmed they had been preventing the settlement as a result of they want more cash, Morgan stated.

“None of the objectors chose to speak at the hearing of the settlement motion, but a review of their written objections indicates that they have no principled grounds for objecting to the settlement other than that they would like more money,” Morgan wrote.

“While I sympathize with that sentiment, I am not in a position to compel that the settlement fund be increased, nor am I inclined to reject the settlement based on a small handful of class members who would like more.”

This report by The Canadian Press was first revealed Might 26, 2025.

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Tara Deschamps, The Canadian Press