Loblaw and its parent company will pay $500 million for their role in an alleged bread price-fixing scheme.
The companies announced Thursday have entered into minutes of settlement to resolve national class-action lawsuits against them.
George Weston Ltd. will pay $247.5 million in cash and Loblaw Companies Ltd. will pay $252.5 million, which includes $156.5 million in cash and $96 million previously paid under the Loblaw Card program.
Galen Weston, who is chairman of Loblaw and chairman and CEO of George Weston, apologized to Canadians.
“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,” Weston said in a statement.
“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.”
Loblaw and George Weston were among several companies who allegedly took part in an industry-wide price-fixing arrangement between 2001 and 2015 involving certain packaged bread products.
The payouts must still be approved by the courts.
