Canada Bread denies price fixing scheme, points finger at Maple Leaf Foods
Global News
In a statement of defence for a class-action lawsuit, Canada Bread Co. Ltd. denied participating in a 'lengthy, wide-ranging conspiracy' to fix the price of bread.
The bread supplier that admitted to price-fixing earlier this year says in new court filings that any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods.
In a statement of defence for a class-action lawsuit alleging a bread price-fixing scheme, Canada Bread Co. Ltd. denied participating in a “lengthy, wide-ranging conspiracy” to fix the price of bread. It also denied profiting from the alleged conspiracy, or from the price increases it pleaded guilty to participating in as part of the Competition Bureau’s investigation.
“To the extent that Canada Bread profited from any actionable anti-competitive behaviour, all of the material benefit accrued to Maple Leaf,” the company said its statement filed to Ontario Superior Court on Oct. 25.
Allegations of improper pricing conduct at Canada Bread while Maple Leaf was a shareholder are “totally unfounded,” said Suzanne Hathaway, Maple Leaf’s senior vice-president, general counsel and communications, in an emailed statement.
“The Statement of Defence filed by Canada Bread … simply repeats the baseless accusations they made earlier this year, which were widely reported,” Hathaway said.
In June, Canada Bread was fined $50 million after pleading guilty to four counts of price-fixing bread products under the Competition Act. The Competition Bureau called it the highest price-fixing fine ever imposed by a Canadian court.
Canada Bread admitted to arranging with its competitor Weston Foods to increase prices on a variety of packaged bread products, resulting in two price increases, one in 2007 and one in 2011. As noted in the Oct. 25 court filings, the company admitted in June that one of its most senior executives, who was also a senior officer at Maple Leaf at the time, participated in the price-fixing agreements.
At the time, Canada Bread was majority-owned by Maple Leaf. It was purchased by Mexico-based Grupo Bimbo in 2014.
The employee was indicted for allegedly distributing personal information of TD Bank customers, the latest criminal probe to hit the U.S. arm of the Canadian financial institution.
Stock markets were rising broadly higher on news of Donald Trump's U.S. election victory on Wednesday. Here's how investors say you should adjust your portfolio.
The Bank of Canada's Carolyn Rogers says improving housing affordability ultimately requires reaching a balance between supply and demand, which she says will take time.
Donald Trump was previously a crypto skeptic but changed his mind and took a favorable view of cryptocurrencies ahead of the election.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.
Bell Canada will use $4.2 billion of the proceeds it got from selling its stake in Maple Leaf Sports & Entertainment to Rogers Communications to fund this acquisition.
With the costs of pet ownership rising, the Competition Bureau sees an opportunity to drive down the prices of medication by expanding distribution to pharmacies.
Major North American carriers with international operations are cashing in on a booming demand for overseas travel and a resurgence in business bookings.