Los Angeles, CA: A $41.9 million settlement in a breach of contract class action lawsuit pending against Safeway Inc, has received final approval. The suit was brought by customers who alleged the supermarket chain overcharged for groceries purchased online. Originally filed in June 2011, the complaint alleges that while a Safeway service agreement and the company's website advertised that groceries bought online would be the same as what the delivering store charged that day, Safeway actually charged an additional 10 percent increase on most groceries.
U.S. District Judge Jon S. Tigar granted final approval, which, under the terms of the settlement, will provide damages of approximately $31 million for the certified class, together with prejudgment interest of $10.9 million. Safeway has reserved the right to appeal, stating that it disagrees with the rulings on liability, damages and a March 2014 class certification.
Judge Tigar held in August, that named plaintiff Michael Rodman and fellow class members were entitled to recover what the profit Safeway made from a concealed markup price for groceries delivered from April 2010 to December 2012.
However, on the judge also ruled on a separate motion, that Safeway was not liable for customers who used its delivery service prior to 2006 since it was run by a third-party vendor at the time.
The case is Rodman v. Safeway Inc., case number 3:11-cv-03003, in the U.S. District Court for the Northern District of California.
