The Companies apologize to Canadians for their role in a
decade-old, industry-wide bread price-fixing arrangement and agree
to a total settlement of $500 million
that will involve a cash payment of $404
million in addition to $96
million having already been paid through the previously
administered Loblaw Card program.
TORONTO, July 25,
2024 /CNW/ - George Weston Limited ("George Weston")
(TSX: WN) and Loblaw Companies Limited ("Loblaw") (TSX: L) (the
"Companies") jointly announced today that they have entered into
minutes of settlement to resolve nationwide class action lawsuits
against them relating to their role in an industry-wide price
fixing arrangement between 2001 and 2015 involving certain packaged
bread products. The minutes of settlement provide for a total
settlement of $500 million.
George Weston will pay $247.5 million in cash, and 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). The
$500 million settlement figure was
negotiated with the plaintiffs' lawyers in a mediation presided
over by the Chief Justice of the Ontario Superior Court of Justice.
The settlement is subject to the finalization of a binding
settlement agreement between the Companies and the plaintiffs'
lawyers, and Court approval. Upon approval, the settlement
will resolve all the plaintiffs' claims against the Companies
relating to this matter.
Upon discovering the industry-wide arrangement in March 2015, the Companies immediately reported it
to the Competition Bureau, with whom they have been fully
cooperating ever since. As an immediate response to the
non-compliant behaviour, the Companies took several actions,
including overhauling how pricing is managed and significantly
enhancing their compliance programs. These measures, which remain
in place today, are industry-leading and include the establishment
of an independent Compliance Office, reporting to the Loblaw Board
of Directors, that has oversight of day-to-day compliance with laws
and policies, including pricing practices.
"On behalf of the Weston group of companies, we are sorry for
the price-fixing behaviour we discovered and self-reported in 2015.
This behaviour should never have happened. We have the privilege of
serving Canadians from coast to coast. That privilege needs to be
earned each and every day. Reaching a settlement on this matter was
the right thing to do in response to previous behaviour that did
not meet our values and ethical standards," said Galen G. Weston, Chairman of Loblaw and Chairman
and Chief Executive Officer of George
Weston.
"Canadians count on Loblaw to provide great value and we seek to
meet their needs and earn their trust whenever and wherever they
choose to shop with us," said Per
Bank, President and Chief Executive Officer of Loblaw. "We
will continue to work hard to deliver on that commitment."
The settlement funds will be distributed to eligible class
members in accordance with a plan of distribution to be approved by
the Courts. Further details regarding the distribution of the
settlement payment will be available as part of the Court's
approval process.
About George Weston Limited
George Weston Limited is a Canadian public company founded in 1882.
The Company operates through its two reportable operating segments,
Loblaw Companies Limited and Choice Properties Real Estate
Investment Trust. Loblaw provides Canadians with grocery, pharmacy,
health and beauty, apparel, general merchandise, financial services
and wireless mobile products and services. Choice Properties owns,
manages and develops a high-quality portfolio of commercial and
residential properties across Canada.
About Loblaw Companies Limited
Loblaw is Canada's food and
pharmacy leader, and the nation's largest retailer. Loblaw provides
Canadians with grocery, pharmacy, health and beauty, apparel,
general merchandise, financial services and wireless mobile
products and services. With more than 2,400 corporate, franchised
and Associate-owned locations, Loblaw, its franchisees and
Associate-owners employ more than 221,000 full- and part-time
employees, making it one of Canada's largest private sector employers.
Loblaw's purpose – Live Life Well® – puts first the needs and
well-being of Canadians who make one billion transactions annually
in the company's stores. Loblaw is positioned to meet and exceed
those needs in many ways: convenient locations; more than 1,050
grocery stores that span the value spectrum from discount to
specialty; full-service pharmacies at nearly 1,400 Shoppers Drug
Mart® and Pharmaprix® locations and close to 500 Loblaw locations;
PC Financial® services; affordable Joe Fresh® fashion and family
apparel; and four of Canada's
top-consumer brands in Life Brand®, Farmer's Market™, no name® and
President's Choice®.
Forward Looking Statements
This press release may contain forward-looking information within
the meaning of applicable securities legislation, including with
respect to the announced litigation settlement, which reflects
George Weston's and Loblaw's current
expectations regarding future events. Forward-looking information
is based on a number of assumptions and is subject to a number of
risks and uncertainties, many of which are beyond George Weston's and Loblaw's control that
could cause actual results and events to differ materially from
those that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are not
limited to, the factors discussed in George
Weston's and Loblaw's respective current Annual MD&A and
Annual Information Form, each of which are available on SEDAR+ at
www.sedarplus.ca. George Weston and
Loblaw do not undertake any obligation to update such
forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law. All forward-looking statements
contained in this press release are made as of the date hereof and
are qualified by these cautionary statements.
SOURCE Loblaw Companies Limited