09:32 AM EST, 11/22/2024 (MT Newswires) -- Maple Leaf Foods Inc. ( MLFNF ) is suing Canada Bread Co. Ltd. and its parent, Mexico-based Grupo Bimbo, accusing the companies of defamation related to their claims about Maple Leaf's role in an alleged industry-wide scheme to fix bread prices from 2001 to 2015, The Globe and Mail is reporting on Friday.

The report noted Mississauga, Ont.-based Maple Leaf, which was majority shareholder of Canada Bread before selling the business to Grupo Bimbo in 2014, filed a claim with the Ontario Superior Court of Justice in Toronto on Thursday seeking more than $200-million in damages, plus legal costs.

According to the report, the lawsuit stems from allegations that Grupo Bimbo made against Maple Leaf in recent years, claiming that Canada Bread participated in a scheme to fix the price of bread while Maple Leaf controlled the company, and that Maple Leaf failed to disclose the conduct to Grupo Bimbo before its $1.83-billion acquisition in 2014. Canada Bread, which owns Dempster's and other brands, is a leading manufacturer of baked goods in Canada.

The report noted the country's largest grocer, Loblaw Cos. Ltd. ( LBLCF ) , and its parent company George Weston Ltd. ( WNGRF ) first reported the alleged industry-wide conspiracy to the federal Competition Bureau in 2015, in exchange for immunity from criminal charges. The federal watchdog then launched an investigation, which is continuing.

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