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Bread class action dismissed

The Cape High court on Friday dismissed an application that sought to clear the way for a consumer class action against a bread price fixing cartel.

However a lawyer for the applicant said the action would go ahead anyway.

The attorney, Charles Abrahams, said summons would be served on Tiger Brands [JSE:TBS] on Friday and on Pioneer Foods Group [JSE:PFG] and Premier Foods as soon as possible thereafter.

The application dismissed by Acting Judge Francois van Zyl was for certification of the claim as a class action.

He did not give reasons, saying he would supply a full judgment later.

Abrahams told reporters the application for certification would now form part of the main action.

Tiger Brands was found guilty of collusive behaviour in 2007 and Friday was the deadline for a civil case to be lodged.

Earlier this month Pioneer agreed to pay R500m compensation - part of penalties totalling just over R1bn - to competition authorities in exchange for having investigations against it dropped.
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