Proposed class-action lawsuit against Shoppers Drug Mart alleges 'unsafe and unethical corporate practices'
Shoppers Drug Mart is facing a proposed class-action lawsuit by current and former franchise owners at the retail chain who allege parent company Loblaw engaged in corporate practices that placed them in an “irredeemable conflict of interest” and put patient care at risk.
The suit, which has not yet been certified, was filed last week at the Ontario Superior Court of Justice by Toronto-based law firm Ricketts Harris LLP and lists the plaintiffs as current and former pharmacists, who had their agreements with the company terminated after 2014.
In a statement of claim reviewed by CTV News Toronto, the class action alleges that a number of corporate practices introduced by Loblaw after its acquisition of Shoppers Drug Mart in 2014 created “risks to patient safety and pose a significant risk of causing patient harm.”
Some of those practices, according to the lawsuit, include imposing targets on the volume of “MedsCheck” appointments– Ontario’s medication review service – and minimizing support staff hours in an effort to increase revenue and decrease costs.
The claim notes that Shoppers Drug Mart can and has terminated its contracts with franchise owners who “breach key obligations” or criticize their business decisions.
Sivajanan Sivapalan, an Ontario pharmacist and lead plaintiff in the suit, entered an agreement with Shoppers Drug Mart to run a franchise in Beamsville, Ont. in 2011. He subsequently renewed his agreement in 2014, 2017, and 2020.
The suit alleges, after Sivapalan “expressed concerns” regarding the corporate practices to Shoppers Drug Mart, his agreement was terminated without reason on Jan. 23, 2023.
Moreover, since Shoppers Drug Mart was acquired by Loblaw, franchise owners say they have expressed concerns about the corporate policies and their “increased risk to patient safety.” But the claim argues that Shoppers Drug Mart and Loblaw have taken “little to no action” to address the concerns.
Following a meeting on March 25, the Ontario College of Pharmacists (OCP) announced a “zero tolerance” policy for business practices that impede pharmacists “ability to deliver effective care” after hearing from “thousands” of pharmacy professionals.
In a news release, which does not name any pharmacy retail chain specifically, the OCP said it found the reports of “inappropriate pressure” to conduct MedsCheck appointments “deeply troubling.”
“The College will consider every tool available to us to address those concerns,” the OCP said.
To that end, the claim says the OCP policy puts franchise owners at “increased risk of regulatory scrutiny and sanction” from Shoppers Drug Mart.
“Our high-level goal is to seek justice for Shoppers Drug Mart franchisees - pharmacists - who have been forced to practice under corporate policies that place them in an irredeemable conflict of interest, which affects their ability to provide safe and effective patient care,” lead counsel Andrea Sanche told CTV News Toronto in an email.
When asked for comment on the suit, Loblaw told CTV News Toronto that the case has “no merit, whatsoever” and the company plans to “vigorously defend” itself.
The class-action is seeking, among other things, damages for Loblaw’s alleged breaches of contract with currrent and former franchise owners, the amount of which has yet to be determined.
CTVNews.ca Top Stories
Poilievre kicked out of Commons after calling Prime Minister Justin Trudeau 'wacko'
Testy exchanges between the prime minister and his chief opponent ended with the Opposition leader and one of his MPs being ejected from the House of Commons on Tuesday -- and the rest of Conservative caucus walking out of the chamber in protest.
Baby, grandparents among 4 people killed in wrong-way police chase on Ontario's Hwy. 401
A police chase which started with a liquor store robbery in Bowmanville Monday night ended in tragedy some 20 minutes later when a suspect fleeing police entered Highway 401 in the wrong direction and caused a pileup which killed an infant and the child's grandparents, as well as the suspect, investigators say.
Freeland leaves capital gains tax change out of coming budget implementation bill, here's why
Deputy Prime Minister and Finance Minister Chrystia Freeland will be tabling yet another omnibus bill to pass a sweeping range of measures promised in her April 16 federal budget, though left out of the legislation will be the government's proposed capital gains tax change.
CSE says it shared information on Chinese hacking of parliamentarians in 2022
While several MPs and senators say they were only recently made aware of China-backed hackers targeting them, the Communications Security Establishment, one of Canada's intelligence agencies, says it shared information about the incident with parliamentary officials in June of 2022.
Man dies after suffering cardiac arrest while waiting in ER, widow wants investigation
When an ambulance took David Lippert to the hospital in March of 2023, the 68-year-old Kitchener, Ont., executive was hoping to find out why he was feeling weak and unable to walk. Some 24 hours later, he was found unresponsive in the ER.
Sword-wielding man attacks passersby in London, killing a 14-year-old boy and injuring 4 others
A man wielding a sword attacked members of the public and police officers in a northeast London suburb Tuesday, killing a 14-year-old boy and injuring four other people, British authorities said.
WATCH Arnold Schwarzenegger spotted filming in Elora, Ont.
The name of the project has not been officially released although it’s widely believed to be the Netflix series FUBAR.
Eviction for landlord's use was legitimate, despite owners' partial move, B.C. court rules
A B.C. judge has upheld the eviction of a family from their North Vancouver townhouse, finding that the landlords did not take an unreasonable amount of time to move into the home after the tenants vacated it.
What's causing the catastrophic rainfall in Kenya?
The torrential rains and deadly floods that have hit Kenya since March have been some of the worst in the country in recent years. Here's how factors combined to create the deadly deluge.