Loblaw (TSX:L) said it will begin compensating customers after an Ontario court approved a C$500 million settlement over past bread price-fixing practices.
Ontario Superior Court Justice Ed Morgan approved the deal on May 7, calling it “an excellent and fair result.” The settlement includes C$404 million in payments from Loblaw and parent company George Weston Ltd, plus a C$96 million gift card program Loblaw launched in 2017 after admitting to its role in the scheme.
“We sincerely apologize for our role in this matter,” Loblaw said in a statement, adding that it has taken steps to ensure such conduct does not happen again.
The class action covers Canadians who purchased packaged bread between January 2001 and December 2021. Shoppers who did not previously claim a Loblaw gift card may now receive up to C$25. Remaining funds may be distributed to those who did claim the card.
About 78% of the compensation will go to Ontario residents, with the rest allocated to Quebec.
Loblaw’s admission sparked multiple lawsuits, including a Quebec class action in 2019 and an Ontario filing in 2021. The settlement resolves all current and future claims against Loblaw and George Weston, who have agreed to cooperate with ongoing litigation involving other grocers.