Toronto, ON – In a decision described as historic, the Ontario Superior Court has approved a $500 million settlement in a major class-action lawsuit related to the bread price-fixing scandal that rocked Canada’s grocery industry. The settlement, which Judge Ed Morgan called a “mega-fund,” stands as one of the largest of its kind in Canadian history.
On May 7, 2025, Justice Morgan granted final approval of the settlement involving Loblaw Companies Ltd. and George Weston Ltd., who will pay $404 million in direct compensation and acknowledge a prior $96 million gift card program rolled out between 2018–2019. That voluntary program had offered $25 gift cards to affected shoppers as an early attempt at restitution.
“This settlement is beyond any of the mega-fund thresholds noted in the case law, which are more typically in the $50 to $100 million range,” wrote Justice Morgan.
A Decade-Long Price-Fixing Scheme
The case stems from a Competition Bureau investigation launched in January 2016, which uncovered allegations of a long-standing, industry-wide price-fixing arrangement. According to court documents, from 2001 to 2015, Loblaw and George Weston coordinated with competitors to artificially inflate the price of bread by approximately $1.50 per unit across several popular grocery chains, including No Frills, Real Canadian Superstore, Fortinos, Valu-mart, and Your Independent Grocer.
The price-fixing affected a wide range of bakery staples, such as:
- Sliced bread
- Buns
- Bagels
- English muffins
- Naan
- Tortillas
In 2015, both companies admitted their participation in the scheme and self-reported to avoid criminal prosecution. This triggered a wave of legal action, eventually resulting in a certified class-action lawsuit filed in 2021 by anti-poverty advocate Irene Breckon of Elliot Lake, alongside co-plaintiffs Marcy David, Brenda Brooks, and Andrew Balodis.
Settlement Breakdown and Provincial Impact
While most of the settlement funds are earmarked for residents of Ontario, a portion will be allocated to Quebec plaintiffs, where the Superior Court has authorized its own class action. A separate settlement approval hearing is scheduled for June 16, 2025, in Montreal.
In total, the $500 million includes both court-ordered payouts and previously distributed gift cards. Canada Bread, also implicated in the scandal, has pleaded guilty to four counts of price-fixing and was fined $50 million, but continues to deny participating in a broader conspiracy.
Meanwhile, other companies still facing class-action lawsuits—Sobeys, Metro, Walmart Canada, and Giant Tiger—have denied all allegations, and none of the claims have been proven in court.
How Canadians Can Claim Compensation
Canadian shoppers who purchased bread or baked goods between 2001 and 2015 and did not receive a $25 Loblaw gift card may be eligible for compensation from the new settlement fund. A formal claims process is currently being established and will be announced on the official website:
www.canadianbreadsettlement.ca
Those interested are encouraged to check the website regularly for updates on eligibility, documentation requirements, and the process for filing claims once the distribution plan is finalized.