Canadian Lawyer InHouse

March/April 2018

Legal news and trends for Canadian in-house counsel and c-suite executives

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19 CANADIANLAWYERMAG.COM/INHOUSE MARCH 2018 October when George Weston Ltd., the parent company of Loblaw Companies Ltd., issued a public statement. It confirmed that it was part of an industry-wide investigation related to alleged price fixing of certain packaged breads between 2001 and 2015. The statement also disclosed that it was co- operating fully with the Competition Bureau. The announcements resulted in class ac - tion lawsuits being filed against Weston/ Loblaw and other grocery store companies. Loblaw has also offered a $25 gift card to customers as part of its response to the class action proceedings and the fallout from the price fixing allegations. [Loblaw declined a request for comment as a result of the ongo - ing Competition Bureau investigation and class action proceedings]. More details about the scope of the inves- tigation were made public on Jan. 31 after the Ontario Superior Court unsealed the informa- tion to obtain in support of search warrants in the case. Weston/Loblaw have been granted immunity and are cooperating with the Bu- reau and the unsealed document alleges that a total of seven companies — including retailers and suppliers, were part of a lengthy price fix- ing scheme. Many of the other companies alleged to be part of the price-fixing issued immediate and strongly worded denials of wrongdoing after the release of the information to ob - tain document. The timing of the packaged bread investi- gation, while coincidental, means that one of the regulator's more high profile price-fixing cases is going to be proceeding under its exist- ing immunity program at the same time as it seeks approval to revise the framework. Some of the key aspects of the proposed changes are that automatic immunity would not be provided for all directors, officers and employees. This would be decided on an individual basis. Immunity, if granted, would originally be on an interim basis until it is determined that assistance is not required any longer. The proffer process, where a lawyer for a company applying for immunity would set out detailed information about the il - legal activity and disclosure that would be provided, might be recorded on audio. Cur- rently, the normal procedure is for a lawyer to read out the details in the proffer, some- times in the form of a hypothetical, while investigators take notes. "The fact is, at the proffer stage, it has been a paperless pro- cess," says Houston. "Under the existing immunity program, there is clearly an incentive to participate. It creates a race to be first in. It puts a premium on companies to get to the bureau before it has all the facts [in any investigation of its own]," Houston explains. Michael Osborne, a partner at Cassels Brock & Blackwell LLP, formerly with Affleck Greene McMurtry LLP in Toronto, says the benefits of the immunity program, for companies engaged in wrongdoing such as price fixing, are not complicated. "You are confessing to Competition Act offences. The goal is to rat out your competitors No two businesses are alike. We get that. You want a law firm that is flexible and can adapt to your particular business needs without compromising service or quality. At Pallett Valo LLP we provide forward-thinking legal counsel designed to respond to each client's unique legal challenges. That's what we call Right-sized Thinking®. Want a legal solution that's the right fit for you? Call us today to find out more. Legal Service That Fits Any Occasion Right-sized Thinking® • 1-800-323-3781 • pallettvalo.com Your Authority For: Business Law • Commercial Litigation • Commercial Real Estate Construction • Insolvency & Corporate Restructuring Employment & Labour • Wills, Estates & Trusts ntitled-2 1 2018-02-09 12:28 PM

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