A class action lawsuit has been filed against the Canadian Brewer for allegedly failing to provide retirees with unlimited health benefits as promised. The case was filed in Ontario Superior Court on behalf of 900 retirees who were salaried and non-unionized and 700 dependents. The lawsuit alleges breach of contract, conspiracy, and unjust enrichment by capping benefits for retirees.
In December 2006, Labatt announced changes to retirees health benefits that were to be effective March 1, 2007. The changes included a cap on cumulative lifetime health and drug benefits at $50,000. The health care plan's main benefits are coverage of prescription drugs, out-of-country health care costs, private nursing and specific treatments not covered by government programs. Labatt's Brazilian-based parent firm AmBev, a division of the world's largest brewer, InBev SA, is also named in the suit.
