Inside This Issue - News
SDM may face class-action suit
December 6th, 2010
TORONTO – A proposed class-action lawsuit claiming Shoppers Drug Mart (SDM) collected excessive funds from franchisees is baseless, the company says.
The Ontario Superior Court of Justice notified the retailer last month that two owner-operators allege SDM has breached its agreement with them by collecting, receiving and/or retaining more funds and/or benefits than permitted by applicable agreements.
The two claim various declarations and damages of $1 billion on behalf of a proposed class that is comprised of all SDM franchisees.
If granted class-action status, the plaintiffs would represent some 1,181 pharmacists and store owner-operators.
Shoppers Drug Mart says it “believes that the claim is without merit and will vigorously defend the claim,” the company says in a statement.
SDM “prides itself on having strong relations with its associate-owners, who, since 1962, have helped build a brand that is synonymous with exceptional service, value and trust,” according to the statement. “Together, we will continue to focus our efforts on meeting the health, beauty and convenience needs of our patients and customers in the communities we serve.”
Meanwhile, SDM is also fending off a separate lawsuit related to its loyalty program after a customer asked a judge to grant him class-action status in a case which says Shoppers was wrong to reduce the value of the Optimum points on July 1.