Vitamin manufacturers convicted of price fixing are paying $20 million to nine universities.
The money is part of a $132 million settlement approved by the courts of Ontario, British Columbia and Quebec after several companies were found guilty of working together to bloat vitamin prices between 1986 and 1999.
Because so many individuals were owed such small amounts of money after major complainants were paid out, the courts decided to make settlements to agriculture and food education programs across the country.
The Western College of Veterinary Medicine at the University of Saskatchewan will receive $770,0000. The college’s dean said the school hasn’t planned how the money will be spent.
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“We will wait until we see the cheque before we make any concrete plans,” said dean Charles Rhodes.
He said the money will represent 15 percent of his college’s funding and he is awaiting information about how the courts want to see the money used.
As one of the lawyers who brought the class action suit to the courts, J.J. Camp of Vancouver said the courts are trying to redistribute any ill-gotten gains acquired by the defendants.
He said universities with veterinary schools were chosen to receive funds on behalf of farmers, who are major buyers of vitamin products. Schools with doctoral programs in food and nutrition were selected to get money on behalf of consumers of vitamins.
Harvey Strosberg, a Windsor, Ont., attorney who worked on the case, said the payments were designed to ensure some benefit falls to those damaged and to send a message to companies that consider this type of scam in the future that large settlements can be made even when all of the claimants can’t be identified.
Scott Ritchie, an attorney for the Siskinds law firm from southern Ontario, said this particular distribution of $20 million was historic and appropriate.
“With more than $20 million going to universities and other research organizations to further public knowledge and agriculture research related to vitamins, it’s difficult to imagine a better use of the settlement funds,” said Ritchie.
University of Alberta vice-president Gary Kachanoski said the $2.5 million his school will receive will be spent on scholarships, fellowships and research in agriculture and health programs.
Alan Wildeman, vice-president of research at the University of Guelph, said the nearly $5 million in settlement money that will flow to its food and nutrition research budget over the next four years represents nearly 10 percent of its funding.
“This is an opportunity to create some real public good here,” he said.
Here is how the $20 million is being divided, according to the Sutts Strosberg law firm:
- University of British Columbia $3,458,837.66.
- U. of Alberta $2,536,480.95.
- U. of Manitoba $922,356.71.
- U. of Saskatchewan Western College of Veterinary Medicine $768,630.59.
- U. of Toronto $2,435,265.24.
- U. of Guelph $2,435,265.24.
- U. of Guelph Ontario Veterinary College $2,435,265.24.
- Ontario AgriFood Education $2,435,265.24.
- Dalhousie University, Nova Scotia $963,959.16.
- Memorial University, Newfoundland $963,959.16.
