Canadian retailers Loblaws and George Weston have settled the nationwide bread price-fixing lawsuit, agreeing to pay C$500m ($361.704m).  

The settlement resolves allegations of an industry-wide price-fixing arrangement involving packaged bread products from 2001 to 2015. 

The settlement breakdown includes a payment by George Weston of $247.5m in cash. Loblaws will contribute $252.5m, of which $156.5m will be paid in cash and $96m in credit from the Loblaw customer card programme.

Finalisation of the settlement is contingent upon a binding agreement and court approval, and will address all claims against the companies related to the price-fixing issue.  

Details on the distribution of the settlement funds to eligible class members will be determined by a court-approved plan. 

Loblaws chairman and George Weston CEO Galen Weston said: “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.  

“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.”  

After uncovering the price-fixing scheme in March 2015, the companies reported it to the Competition Bureau and have since cooperated fully.  

They have implemented measures to prevent such conduct, including a revamped pricing management system and a comprehensive compliance programme overseen by an independent compliance office. 

Loblaws president and CEO Per Bank said: “Canadians count on Loblaws to provide great value and we seek to meet their needs and earn their trust whenever and wherever they choose to shop with us. We will continue to work hard to deliver on that commitment.” 

In February 2024, Loblaws Companies announced plans to inject C$2bn ($1.4bn) into the Canadian economy during the year.