Media
Release
November
16, 2004
Community Foundation of Ottawa distributing proceeds from
class action settlement
(OTTAWA, On.) – The Community Foundation of Ottawa will
distribute $27,810 to area food charities and breakfast programs
as part of a class action lawsuit involving several manufacturers
of monosodium glutamate (MSG) and nucleotides, two popular food
flavour enhancers.
The settlement stems from price fixing that forced Canadian food
manufacturers to pay more for MSG and nucleotides. This price
increase was then passed on to consumers who ended up paying more
for popular foods such as peanut butter. The action was initiated
by London, Ont. law firm Siskind, Cromarty, Ivey and Dowler LLP,
on behalf of Canadian users of MSG and nucleotides. The defendants
were multinational chemical producers.
Portions of the $963,000 settlement will go to compensate food
manufacturers, grocers and purchasers of raw MSG and nucleotides.
The remaining 45% will be distributed through fifteen community
foundations across Canada. The amount allocated to each foundation
is based on population.
Because of its unique understanding of charities and needs at
the local level, community foundations are a natural choice for
ensuring that the money will be put to causes that desperately
need funding while respecting the spirit of the settlement: helping
the hungry.
“With the holiday season fast approaching, this influx of
money couldn’t come at a more beneficial time,” said
Barbara McInnes, President and CEO of the Community Foundation
of Ottawa.
“People from every type of background use these services
and the numbers keep growing. It’s wonderful to have found
this additional source of support. The Foundation is glad to help
connect these dollars to causes that matter.”
The money will provide local grants to: The Capital City
Mission, The Door Youth Centre, Operation
Go Home, The Ottawa Food Bank, St.
Joe’s Supper Table and the Parkdale Food
Centre.
These grants will be used for supper and breakfast programs, extending
the hours of drop-in centres and to purchase equipment and transportation
essential to the running of these food related charities.
"Community foundations were asked to distribute the lawsuit’s
proceeds because we have a broad national reach and we work with
an extremely wide range of charitable organizations,” said
Monica Patten, President and Chief Executive Officer of the Community
Foundations of Canada. “Our network distributed more than
$90 million last year; we have a proven track record in funding
community initiatives and we’re happy to use those skills
to pass this settlement back to Canadians.”
Proceeds from the settlement will be in the hands of community
groups within the next four to six weeks.
-30-
Contacts:
Barbara McInnes, President and CEO, Community Foundation of Ottawa
(613) 236-1616 ext. 227
NOTE:
A list of the companies involved in the case is attached. A notice
outlining the settlement can be found at www.classaction.ca/content/actions/msg_nucleotides.asp
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Backgrounders
Community Foundation of Ottawa
The Community Foundation of Ottawa (CFO) is an independent centre
for community philanthropy, serving as a trusted resource for
addressing issues and connecting donors with granting opportunities.
It plays a major role in enhancing the nature and scope of philanthropy,
primarily in the local community but also nationally and internationally.
It attracts and manages a growing endowment, the invested earnings
of which provide grants that will be available forever to enhance
the quality of life for all in the region.
With a growing profile the Community Foundation of Ottawa, has
built an enviable reputation for astute financial management,
high quality donor services, strategic grantmaking and innovative
partnerships.
Web site: www.communityfoundationottawa.ca
Community Foundations of Canada
Community Foundations of Canada (CFC) is the national membership
organization for one of the country’s fastest growing charitable
movements. Over the past decade, the number of Canadian community
foundations has more than tripled and so have their combined assets.
Today, there are more than 144 community foundations in cities,
towns and rural areas across Canada. Community foundations are
locally-run public foundations that build and manage endowment
funds to support charitable activities in their area.
MSG/NUCLEOTIDES CLASS ACTION LITIGATION
Case Initiated
The case was first initiated in London, Ontario on September 7,
2001. Class action representatives from Quebec followed suit on
September 25, 2001 and in British Columbia on October 4, 2001.
The case involved price fixing between 1990 and 1999.
Plaintiffs
Bona Foods Ltd. a Toronto-based family-owned food processing company
that manufactures and distributes Italian-style deli meats to
food distributors, pizzerias, supermarkets and restaurants throughout
Canada.
La Cie McCormick Canada Co. a global manufacturer and distributor
of spices and seasonings for consumers and the food industry.
Its Canadian office is located in London, Ont.
Defendants
Archer Daniels Midland Company
Ajinomoto Co., Inc.
Ajinomoto U.S.A Inc.
Takeda Chemical Industries Ltd.
CJ Corp. f/k/a Cheil Jedang Corporation
CJ America Inc.
Daesang America Inc., f/k/a Miwon America Inc.
Kyowa Hakko Kogyo Co. Ltd.
Compensation Plan
Total compensation of approximately $963,000 will be shared among:
Canadian Council of Grocery Distributors 25%
Canadian Federation of Independent Grocers 25%
Community Foundations (see list above) 45%
General Romeo Dallaire Foundation 5%
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