MISSISSAUGA, ONT. — Maple Leaf Foods Inc. is suing Canada Bread Co. Ltd., claiming defamation by the Grupo Bimbo SAB de CV subsidiary in connection with a legal quarrel tied to an industrywide bread price-fixing scheme in Canada.

In a lawsuit filed Nov. 21 in the Ontario Superior Court of Justice, Maple Leaf alleges that Canada Bread and Grupo Bimbo made false and defamatory allegations, including in published statements, about the Mississauga-based company related to the bread price-fixing case. Canada Bread, however, called Maple Leaf’s charges baseless.

The Competition Bureau of Canada in January 2016 started a probe into alleged price-fixing in the nation’s commercial bread industry by major suppliers and retailers. Stretching from late 2001 to March 2015, the investigation led to class actions being brought against Canada Bread and, in June 2023, a settlement in which the company agreed to pay a C$50 million fine.

Canada Bread was acquired by Grupo Bimbo in May 2014. When the deal was announced in February 2014, Maple Leaf owned 90% of Canada Bread’s voting stock.

“Self-serving allegations Grupo Bimbo and Canada Bread have made publicly in the period since the existence of the (Competition) Bureau’s investigation became known that MLF (Maple Leaf Foods) was aware of or played a role in the alleged (bread price-fixing) conspiracy are unfounded, defamatory and equally devoid of merit,” Maple Leaf said in the Nov. 21 lawsuit filing.

Maple Leaf Foods’ suit comes over two months after an Ontario Superior Court of Justice filing by Canada Bread claimed Maple Leaf used the company as a “shield” to avert liability in the bread price-fixing arrangement, resulting in the fine against Canada Bread.

In the Sept. 12 action, Toronto-based Canada Bread filed an amended statement of defense and crossclaim alleging that Maple Leaf, in connection with the bread price-fixing scheme, violated Canada’s Competition Act and as a controlling shareholder breached its management agreements with the bread company.

In announcing the counterclaim, Canada Bread said, “Grupo Bimbo, owner of Canada Bread since 2014, intends to hold accountable those responsible for its damages.”

Maple Leaf rejected Canada Bread’s charges at the time and did so again in its Nov. 21 lawsuit filing.

“Throughout the period from at least late October 2017 to November 2024, Grupo Bimbo and Canada Bread have continued to conspire and collude in an effort to falsely and unfairly blame MLF (Maple Leaf Foods) for their self-inflicted wounds and business failures and to lay the groundwork for unfounded claims Canada Bread and Grupo Bimbo have indicated they intend to commence against MLF,” Maple Leaf stated in its suit.

In an email statement on Nov. 22, Canada Bread – which also does business as Bimbo Canada – acknowledged Maple Leaf’s lawsuit and denied the company’s allegations.

“Canada Bread is aware of Maple Leaf Foods’ latest actions,” Canada Bread stated. “Maple Leaf Foods’ claim is completely without merit. We have no further comment regarding litigation between the parties.”