How to cash in on the proposed $500M Loblaw bread price-fixing class-action settlement

Various brands of bread sit on shelves in a grocery store in Toronto on Wednesday Nov. 1, 2017. THE CANADIAN PRESS/Doug Ives (Doug Ives/THE CANADIAN PRESS)

A proposed $500-million settlement in a pair of class-action lawsuits against Loblaw Cos. Ltd. and parent company George Weston Ltd. for its part in an alleged multi-year bread price-fixing scheme has been executed -- and you could potentially get a slice of the payout.

Lawyers involved in the suits said the latest development came on Jan. 31 and the settlement will now head to court in Ontario and Quebec in May and June, respectively, for approval.

If approved, the settlement, which was first announced last year, will see the two companies pay $404 million cash, minus court-approved expenses, to the plaintiffs. The remaining $96 million was previously paid through the Loblaw Card Program back in 2018, which allowed Canadians to receive a $25 Loblaws gift card as compensation.

The funds will be divided between the two class actions with 22 per cent going to the Quebec suit and the remaining 78 per cent going to the Ontario suit, according to Strosberg Wingfield Sasso LLP and Orr Taylor LLP.

“We are very proud of this settlement and commend Loblaws and Weston for taking responsibility and doing right by all Canadians,” Jay Strosberg, managing partner at Strosberg Wingfield Sasso LLP, said in a statement to CTV News Toronto.

The law firms say the settlement, if approved, will resolve all claims against the two companies.

What happened exactly?

The Competition Bureau began investigating the alleged industry-wide price-fixing scheme back in 2016. It’s alleged that the companies involved conspired to artificially inflate the price of a loaf of bread between 2001 and 2015 by at least $1.50.

Canada Bread, Metro and Sobeys, as well as Wal-Mart Canada and Giant Tiger, are also accused in the alleged conspiracy.

In a statement previously provided to The Canadian Press, Loblaw chairman Galen Weston apologized for their involvement.

“On behalf of the Weston group of companies, we are sorry for the price-fixing behaviour we discovered and self-reported in 2015,” he said at the time, adding that “this behaviour should never have happened.”

Canada Bread has pleaded guilty to four counts of price-fixing, but denies participating in the scheme. Metro and Sobeys have also denied the allegations.

Who’s eligible to receive the funds?

Anyone who purchased packaged bread in Canada (except Quebec) between Jan. 1, 2001 and Dec. 31, 2021 is automatically included in the Ontario settlement. Details on the Quebec settlement can be found here.

Eligible “settlement class members” don’t need to take any action at this time to participate, but can get updates on the legal proceedings here.

If you don’t want to be included in the legal action, you must opt-out or exclude yourself by April 25.

Objections to and comments about the settlement must be submitted by the same date.

What happens next?

As part of the proposed settlement, the lawyers involved in the class actions say they will be given access to information that will be used in continuing their case against Canada Bread, Metro, Sobeys, Wal-Mart Canada, and Giant Tiger.

“The cooperation we’ve gained from Loblaws and Weston through this agreement allows us to be swift and decisive in our pursuit of the remaining defendants,” Strosberg said.

“Accountability awaits every defendant, though they each have the opportunity to step up and do what’s right.”

With files from The Canadian Press