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Canada Bread says Maple Leaf used it as a 'shield' in bread price-fixing case
Canada Bread is accusing Maple Leaf Foods of using it as a “shield” to avoid liability in the alleged bread price-fixing scheme that’s the subject of two class-action lawsuits and an ongoing Competition Bureau investigation.
In filings in an Ontario court as part of one of the class actions, Canada Bread alleges Maple Leaf broke the law and breached its management agreements.
Maple Leaf was the controlling shareholder of Canada Bread up until Grupo Bimbo bought the company in 2014.
Canada Bread is so far the only company to be fined by the Competition Bureau in relation to the alleged scheme, taking a $50-million hit in 2023.
The company alleges Maple Leaf is liable for any damages it has sustained or will sustain from the Competition Bureau investigation and the lawsuits.
Maple Leaf did not immediately respond to a request for comment.
This report by The Canadian Press was first published Sept. 12, 2024.
Companies in this story: (TSX:MFI)
