After $500-million Loblaw price-fixing settlement, lawyers set sights on other industry players

Cyclists pass a Loblaws in downtown Toronto on July 25. Loblaw Co. and its parent company George Weston Ltd. have agreed to pay $500-million to settle bread price-fixing lawsuits.Lawyers for the plaintiffs in a class-action lawsuit over an alleged conspiracy to fix bread prices in Canada are now setting their sights on other industry players, after a

The lawsuits stem from Loblaw’s and George Weston’s public admission in 2017 that the companies had participated in an alleged “industry-wide” scheme that artificially raised prices on packaged breads, buns, bagels, rolls, naan, English muffins, wraps, pitas and tortillas. The companies first reported the alleged scheme to the Competition Bureau in 2015, leading to its investigation.

“It’s over,” chief financial officer Richard Dufresne said during a conference call to discuss Loblaw’s second-quarter earnings. But the agreement brings further scrutiny to Loblaw, at a time when the company has faced calls to boycott its stores, and pushback from consumers and politicians over whether the company did enough to rein in food price increases.

The company reported its net earnings available to common shareholders were $457-million or $1.48 per share for the quarter ended June 15, compared to $508-million or $1.58 per share in the same period the prior year. The court previously dismissed a motion to certify the action against Maple Leaf, but plaintiffs argue that Canada Bread’s guilty plea implicates Maple Leaf. After its settlement with the Competition Bureau, Canada Bread also voluntarily disclosed information to the plaintiffs. Itscites e-mails describing meetings between Loblaw chairman Galen Weston and Maple Leaf’s executive chair and former chief executive Michael McCain, which occurred in 2007 and 2010.

“I actually don’t care if these people want to come forward and want to settle,” Mr. Strosberg said. “If they do, great. But we’re not looking for any deals at this point. We want to go to trial with the information that we’re going to be getting.”

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Loblaw, parent company George Weston agree to pay $500-million to settle bread price-fixing lawsuitsCanada’s largest grocer and holding company already publicly acknowledged their participation in price-fixing in 2017 in exchange for immunity from criminal charges
Fonte: globeandmail - 🏆 5. / 92 Leggi di più »

Loblaw and parent company agree to pay $500 million in bread price-fixing lawsuitLoblaw Cos. Ltd. and its parent company George Weston Ltd. say they have agreed to pay $500-million to settle a class-action lawsuit regarding their involvement in an alleged bread price-fixing scheme.
Fonte: CP24 - 🏆 30. / 67 Leggi di più »