$500M bread price fixing settlement now open for Canadians to claim – National
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Canadian shoppers now have a chance to get their share of a $500-million settlement in a class-action lawsuit related to the alleged industry-wide price fixing of bread.
Strosberg Wingfield Sasso LLP and Orr Taylor LLP said Thursday the claims process is now open in the approved settlement involving Loblaw Cos. Ltd. and its parent company George Weston Ltd.
To claim compensation, eligible Canadian residents who purchased packaged bread for personal use between Jan. 1, 2001 and Dec. 31, 2021 — including bagged bread, buns, rolls, bagels, naan, English muffins, wraps, pita and tortillas — must submit a completed claim form by Dec. 12.
Proof of purchase is not required.
Forms can be found online at CanadianBreadSettlement.ca for those residing anywhere in Canada outside of Quebec as of Dec. 31, 2021, and at QuebecBreadSettlement.ca for those living within that province on that date.
“This resolution provides Canadian consumers with monetary relief they deserve,” said Jim Orr, partner at Orr Taylor LLP.
In May, Ontario Superior Court Judge Ed Morgan approved the $500-million settlement in the case, which includes a combined $404 million to be paid by Loblaw and George Weston after they were accused of engaging in an industry-wide scheme to fix the price of bread.
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The remaining $96 million is accounted for through a gift card program Loblaw began in 2018 and ran through 2019 in hopes of making amends with customers who paid about $1.50 more per loaf of bread.
Morgan had said in his written decision that the money put forward by the grocery companies was “an excellent and fair result for all concerned.”
The settlement agreement was also approved by the Superior Court of Quebec in July.
Once legal fees and other court expenses are paid, 78 per cent of the funds are to be allocated to shoppers in Ontario with the remaining amount headed for people in Quebec.
Customers who bought bread between January 2001 and December 2021 and did not previously take a gift card from Loblaw will eventually receive up to $25.
The law firms said Thursday that customers who previously received the $25 Loblaw card may submit a claim for additional compensation, but they will only be paid an incremental amount if there are sufficient settlement funds available.
They will also only receive additional compensation if the amount is more than the $5 minimum payment threshold set for the settlement.
“We encourage Canadian consumers who purchased packaged bread to apply for compensation under the settlement,” said Jay Strosberg, managing partner at Strosberg Wingfield Sasso LLP.
“We have designed a claims process that is straightforward and easy for consumers to use.”
The settlement ends one chapter in the saga that has also lobbed allegations at other large grocers, including Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger.
Class actions continue against those companies.
While those players have denied their participation in an alleged scheme to co-ordinate the price of bread back to 2001, Loblaw and George Weston told the Competition Bureau they were part of the practice in 2015.
Their admission wasn’t publicized until 2017.
The law firms say settlement funds allocated for Canadian businesses or entities that purchased packaged bread for resale between 2001 and 2021 are being held in trust. The funds will be distributed at a later date as directed by the courts.
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