Canada Bread owner Grupo Bimbo is suing Maple Leaf Foods for more than $2 billion, saying it lied about the company’s involvement in an alleged bread price-fixing conspiracy.
The filing comes a week after a lawsuit against Grupo Bimbo from Maple Leaf, which was Canada Bread’s controlling shareholder until 2014.
Canada Bread has claimed Maple Leaf should be liable for its involvement in the alleged scheme, which is also the subject of two class-action lawsuits and an ongoing Competition Bureau investigation.
Grupo Bimbo’s suit argues that Maple Leaf caused Canada Bread to engage in the alleged conspiracy and deliberately withheld knowledge of it from Grupo Bimbo during the sales process.
Meanwhile, Maple Leaf is suing Grupo Bimbo for defamation, saying allegations that the company was aware of or played a role in the alleged conspiracy are unfounded.
None of the claims have been tested in court, and both companies deny each other’s accusations.
This report by The Canadian Press was first published Nov. 29, 2024.
Companies in this story: (TSX:MFI)
Rosa Saba, The Canadian Press