The bread industry in Canada has been kneading controversy for years, but the recent settlement over price-fixing accusations is the yeast we all needed to rise against corporate greed. The scandal, which left a sour taste in the mouths of many, involved some of the biggest bakers in the Land of Maple who were caught buttering their own bread at the expense of consumers.
The bread price-fixing scandal first broke in 2017 when lawyers filed a class action in the Ontario Superior Court of Justice alleging that major bread producers and grocery chains were involved in a doughy conspiracy to inflate prices. According to the suit, this involved more than just breadcrumbs; it was a well-baked plan involving $5 billion in ill-gotten gains that stretched over nearly two decades. Consumers, who trusted these companies to provide them their daily bread, instead found themselves paying rising prices as the industry quietly raked in the dough.
Fast forward to 2024, and a historic $500 million settlement has finally been reached with Loblaw and George Weston Ltd., promising to put bread back into the pockets of Canadian consumers. The settlement also includes an agreement that both companies will cooperate with class action suits against other companies. According to lead lawyer Jay Strosberg, these include Walmart Canada, Giant Tiger and Sobeys. For years, these companies milked the situation for all it was worth, and now are being forced to raise a lot of dough for injured consumers. Many are still left wondering if this is enough to truly butter their bread or if it’s just a drop in the basket. The proof, as they say, will be in the pudding, bread pudding that is.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Georgia and Pennsylvania.
Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.
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About Stephen Doherty
Stephen Doherty is Senior Counsel in the Pennsylvania office of Faruqi & Faruqi, LLP. Mr. Doherty practices in the area of antitrust law and is significantly involved in prosecuting antitrust class actions on behalf of direct purchasers of brand name and generic drugs and charging pharmaceutical manufacturers with price fixing and with illegally blocking the market entry of less expensive competitors. Earlier in his career, Mr. Doherty litigated consumer fraud and employment discrimination cases in both state and federal courts in Pennsylvania and New Jersey. He has served on numerous volunteer boards, including Gilda's Club of Delaware Valley and the BCBA Pro Bono Committee, has served as a volunteer instructor for VITA Education Services, and as a pro bono lawyer for the Consumer Bankruptcy Assistance Project.Mr. Doherty is a 1992 graduate of Temple University Law School, where he was senior staff for the Temple Law Review and received several academic awards and is the author of Joint Representation Conflicts of Interest: Toward A More Balanced Approach, 65 Temp. L. Rev. 561 (1992). Mr. Doherty is a 1988 graduate of Dickinson College (B.A., Anthropology and Latin American Studies).
Stephen Doherty
Senior Counsel at Faruqi & Faruqi, LLP
Pennsylvania office
Tel: (215) 277-5770
Fax: (215) 277-5771
E-mail: sdoherty@faruqilaw.com
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