Loblaw Cos. Ltd. and its parent company, George Weston Ltd., have reached a significant CAD $500 million settlement to resolve class-action lawsuits linked to a bread price-fixing scheme. This case marks the largest antitrust settlement in Canadian history, addressing actions that took place from 2001 to 2015 involving multiple packaged bread products.

George Weston will be responsible for CAD $247.5 million, while Loblaw will cover CAD $252.5 million. This includes CAD $156.5 million in cash and CAD $96 million in credits, related to payments made to customers through the Loblaw Card program.

Loblaw reported a notable impact on its financials, with net earnings falling to CAD $457 million for the quarter ending July 25, a decrease of 10% compared to the previous year, attributed to settlement-related charges. Specifically, the company recorded a CAD $121 million charge in that quarter.

Per Bank, Loblaw’s CEO, stressed the company’s commitment to providing value for Canadians, aiming to rebuild trust with customers. Meanwhile, ongoing class actions remain against other retailers implicated in the broader conspiracy, including Canada Bread, Sobeys, Metro, and Giant Tiger. Notably, Canada Bread recently pleaded guilty to four counts of price-fixing, incurring a CAD $50 million fine under the Competition Act.

The settlement has been structured to allow access to vital evidence for pursuing cases against these remaining defendants, potentially leading to further financial recovery for Canadian consumers. As the largest Canadian retailer with 2,500 stores, Loblaw’s actions are a reminder of the high stakes involved in maintaining fair pricing practices within the grocery industry.