Canada Bread claims Maple Leaf used the company as a “shield” in the bread price fixing case

Canada Bread accuses Maple Leaf Foods of using it as a “shield” to avoid liability in connection with the alleged bread price-fixing scheme, which is the subject of two class action lawsuits and an ongoing investigation by the Federal Trade Commission.

In a class action lawsuit filed in an Ontario court, Canada Bread alleges that Maple Leaf broke the law and violated its management agreements.

Maple Leaf was the majority shareholder of Canada Bread until Grupo Bimbo bought the company in 2014.

Canada Bread is so far the only company to be fined $50 million by the antitrust authorities in connection with the alleged fraud scheme in 2023.

The company claims that Maple Leaf is liable for all damages it has suffered or may suffer as a result of the antitrust investigations and legal proceedings.

Maple Leaf did not immediately respond to a request for comment.

This report by The Canadian Press was first published September 12, 2024.

Companies in this story: (TSX:MFI)

The Canadian Press