1 week ago
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Author of the article:
The Canadian Press
Rosa Saba
Published Nov 29, 2024 • 2 infinitesimal read
Canada Bread proprietor Grupo Bimbo is suing Maple Leaf Foods for much than $2 billion, saying it lied astir the company’s engagement successful an alleged breadstuff price-fixing conspiracy.
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The filing comes a week aft a suit against the Mexico-based Grupo Bimbo from Maple Leaf, which was Canada Bread’s controlling shareholder until 2014.
Canada Bread has claimed Maple Leaf utilized it arsenic a “shield” to debar liability successful the alleged scheme.
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The alleged price-fixing conspiracy is besides the taxable of 2 class-action lawsuits and an ongoing Competition Bureau investigation.
Canada Bread is the lone institution that’s been finedin the Competition Bureau’s investigation. The institution pleaded blameworthy to 4 counts of price-fixing successful 2023 and was fined $50 million. However, it has denied taking portion successful a “lengthy, wide-ranging conspiracy.”
Grupo Bimbo’s suit argues that Maple Leaf caused Canada Bread to prosecute successful the alleged conspiracy and deliberately withheld cognition of it from Grupo Bimbo during the income process.
Meanwhile, Maple Leaf is suing Grupo Bimbo and Canada Bread for defamation, saying allegations that the institution was alert of oregon played a relation successful the alleged conspiracy are unfounded.
None of the claims person been tested successful court, and some companies contradict each other’s accusations.
“To accidental we volition support against this frivolous enactment vigorously, would beryllium a colossal understatement,” said Maple Leaf enforcement president Michael McCain successful a statement, calling the suit meritless.
McCain, formerly the main enforcement astatine the company, is named arsenic a suspect successful Grupo Bimbo’s lawsuit.
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“Maple Leaf Foods and its officers acted appropriately astatine each times, including with respect to making full, plain and existent disclosure to Grupo Bimbo astatine the clip of its acquisition of Canada Bread,” helium said.
Mexico-based Grupo Bimbo said successful the connection of assertion that it bought each the outstanding shares of Canada Bread successful 2014 for astir $1.83 billion. The acquisition price, it said, was predicated connected Maple Leaf’s allegedly mendacious representations that Canada Bread was successful compliance with applicable laws and had made the due disclosures astir its business.
Grupo Bimbo claims that Canada Bread participated successful the alleged price-fixing conspiracy astatine the absorption of Maple Leaf, which “was itself a subordinate and a profiteer of the conspiracies.”
Canada Bread has said that immoderate anticompetitive behaviour it participated successful was astatine the absorption of and to the payment of Maple Leaf.
Maple Leaf said successful its defamation suit that determination is nary merit to the allegations the bureau has made against Canada Bread concerning an alleged conspiracy.
The Competition Bureau’s probe began successful 2016. It has alleged that astatine slightest $1.50 was added to the terms of a loaf of breadstuff implicit 16 years.
Canada Bread, on with the large grocers and different companies, is simply a suspect successful some class-action lawsuits, though Loblaw and George Weston — which received immunity from prosecution aft admitting to participating successful an “industry-wide price-fixing arrangement” — precocious settled some suits for a combined $500 million.
The different companies implicated successful the ongoing lawsuits person denied participating successful the alleged breadstuff price-fixing scheme.
This study by The Canadian Press was archetypal published Nov. 29, 2024.
Companies successful this story: (TSX:MFI)
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