Grupo Bimbo S.A.B. de C.V. ("Grupo Bimbo") issued a Statement of Claim in the Ontario Superior Court of Justice against Maple Leaf Foods Inc. ("Maple Leaf") and certain senior officers and directors of the Company in relation to the sale of Canada Bread Company, Limited ("Canada Bread") to Grupo Bimbo in 2014.
Grupo Bimbo is seeking over CAD $2 billion in damages from Maple Leaf and certain senior officers and directors of the Company for alleged fraudulent and negligent misrepresentation during the Canada Bread sale process, or restitution for unjust enrichment.
At the time Canada Bread was sold to Grupo Bimbo, Maple Leaf was the 90% owner, controlled Canada Bread, and led the transaction negotiations and diligence process. Following the sale, in 2017 Canada Bread was the subject of a price-fixing investigation within the commercial bread industry by the Competition Bureau. A subsequent prosecution resulted in Canada Bread paying a fine of CAD $50 million in 2023 and an on-going class action brought against market participants.
Source : Newswire.ca