Retail News Breaks Archives
Shoppers Drug Mart responds to class-action suit
November 22nd, 2010
TORONTO – Shoppers Drug Mart Corp. said two of its licensed associate-owners have filed a $1 billion class-action lawsuit against the company.
The Canadian drug store chain on Monday reported that it has obtained a copy of a notice of action in a proposed class proceeding filed in the Ontario Superior Court of Justice by two of its licensed associate-owners.
The plaintiffs claim various declarations and damages of $1 billion on behalf of a proposed class comprised of all of the retailer's licensed associate-owners, according to Shoppers Drug Mart.
"The claim alleges, among other things, that Shoppers Drug Mart and two of its affiliates breached contractual and other duties to its associate-owners by collecting, receiving and/or retaining funds and/or benefits that are in excess of those permitted by the applicable agreements," the company stated.
Shoppers Drug Mart added that it thinks the claim is "without merit" and noted that the company will "vigorously defend the claim."
The retailer's store network includes more than 1,181 drug stores under the Shoppers Drug Mart and Pharmaprix banners. The company also licenses or owns more than 58 medical clinic pharmacies under the name Shoppers Simply Pharmacy (Pharmaprix Simplement Santé in Québec) and eight Murale luxury beauty stores.