The suit relates to the 2014 sale of Maple Leaf-controlled Canada Bread Company to Bimbo for "allegedly making false, fraudulent and negligent statements" during the sale process.
Grupo Bimbo, one of the world's leading producers of bread and bakery products, has filed a lawsuit for more than 2 billion Canadian dollars (US$ 1.43 billion) against Maple Leaf Foods and former senior officials for an alleged price-fixing scheme in the Canadian market.
The lawsuit, filed in the Ontario Superior Court of Justice, is related to the sale of Canada Bread Company Limited to Grupo Bimbo in 2014, the company said in a statement sent to the Mexican Stock Exchange (BMV).
The Mexican baking group accuses Maple Leaf Foods, then owner of Canada Bread, and some of its senior officials of making false, fraudulent and negligent statements during the sales process.
“Grupo Bimbo is seeking more than C$2 billion in damages from Maple Leaf and certain former senior Maple Leaf officials for allegedly fraudulently and negligently making false statements during the sale process of Canada Bread, or restitution for unjust enrichment,” the notice reads.
When Grupo Bimbo acquired Canada Bread in May 2014 for CAD 1.83 billion, Maple Leaf Foods owned 90% of the company and led the negotiations and vetting process prior to the sale in 2017.
Following the sale, Canada Bread was investigated by the Canadian Competition Authority for alleged antitrust practices. price fixing in the bread industry, Grupo Bimbo explained.
He added that as a result of that investigation and following a court case, Canada Bread was fined CAD 50 million in 2023. In addition, a class action lawsuit against several market players related to the case is still ongoing.
According to the Canadian Competition Bureau, between 2001 and 2015, major suppliers and retailers in the baking industry allegedly agreed to artificially increase the price of bread per unit by at least C$1.50.
Maple Leaf Foods also filed a complaint
In response to the lawsuit filed by the Mexican baking group, Maple Leaf Foods filed a lawsuit against Canada Bread and its parent company, Grupo Bimbo, on November 21 for defamation related to the same price-fixing case, as well as allegations of violations of competition laws and conspiracy.
In this lawsuit filed in the Ontario Superior Court of Justice, Maple Leaf Foods is seeking damages of CAD 200 million (approximately US$141.9 million).
Additionally, he has asked for $10 million in punitive damages and compensation for any other legal costs associated with the case.
Maple Leaf Foods denied the allegations, saying in a statement: “We have once again been subjected to false and misleading claims which we reject in their entirety… We have done nothing wrong.”
The Canadian company said Canada Bread has filed “new allegations” with the intention of involving it “even more” in a class action lawsuit that has been ongoing for years, possibly with the aim of diverting attention from its own problems.
She recalled that three years ago, the plaintiffs tried to include her in the same class action, with arguments similar to the current ones.
At that time, he added, the Ontario Superior Court dismissed the allegations against Maple Leaf and determined that "there is no evidence to support any cause of action against Maple Leaf."
“Neither Canada Bread nor the plaintiffs appealed that decision. Despite this ruling in 2021, here we are again, facing baseless allegations, even though there are no new facts to justify a different outcome,” he said.
She said Canada Bread is using these and other “clear and obvious false claims” to try to recover damages Maple Leaf Foods suffered related to Canada Bread’s own 2017 decision.
That year, Canada Bread sought exoneration from the Canadian Competition Bureau for an alleged conspiracy, which Maple Leaf Foods and other parties say never occurred.
