Morrisons has launched legal action against ten former Safeway employees, including the supermarket chain’s former chairman, in a bid to recoup losses associated with alleged price fixing on milk in 2002 and 2003.
In 2007, the UK’s Office of Fair Trading investigated possible collaboration between a number of retailers and wholesalers in 2002 and 2003 to artificially control the price of milk.
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Although no fines have been formally disclosed, just-food understands that a number of companies are subject to financial penalties and the OFT is believed to have fined Morrisons about GBP16m (US$25.5) for price fixing committed by former Safeway staff prior to the UK retailer’s acquisition of the supermarket chain.
It is believed that Morrisons has resorted to legal action in a bid to recoup its losses from the employees associated with the OFT’s allegations, including former Safeway chairman David Webster.
A spokesperson for Morrisons declined to comment on legal grounds.
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