Canada Bread refutes allegations of a price-fixing scheme in its court submission.
The bakery supplier, which confessed to engaging in price-fixing earlier this year, asserts in recent court documents that any involvement in anti-competitive practices was carried out under the guidance and for the advantage of its former majority owner, Maple Leaf Foods.
In its response to a class-action lawsuit accusing it of a bread price-fixing scheme, Canada Bread Co. Ltd. refutes any involvement in a “prolonged, extensive conspiracy” to manipulate bread prices. The company also rejects claims of benefiting from the alleged conspiracy or from the price hikes it admitted to 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.
Suzanne Hathaway, Senior Vice President, General Counsel, and Communications at Maple Leaf, dismissed claims of inappropriate pricing behavior at Canada Bread during Maple Leaf’s ownership as “completely baseless,” as stated in an email.
In June, Canada Bread faced a $50 million fine following its guilty plea to four charges of price-fixing bread products under the Competition Act. The Competition Bureau labeled it the largest price-fixing penalty ever imposed by a Canadian court.
Canada Bread confessed to colluding with its rival, Weston Foods, to raise prices on various packaged bread items, resulting in two separate price hikes in 2007 and 2011. As highlighted in the court filings dated October 25, the company acknowledged in June that one of its high-ranking executives, who concurrently served as a senior officer at Maple Leaf at that time, was involved in the price-fixing agreements.
Canada Bread asserts that it did not gain any benefit from the admitted price-fixing or from the activities it denies. However, should any evidence suggest otherwise, the accountability rests with Maple Leaf, not Canada Bread.
They’re trying to comprehensively cover their risk.”
In June, The Canadian Press reported that Maple Leaf stated it had no knowledge of any misconduct by Canada Bread or its senior leadership while Maple Leaf held shares in the company.
Current Maple Leaf executive chairman, McCain, refuted any involvement. In August, he addressed “recent headlines” related to an internal email from 2007 in a statement posted on the company’s website.
“We continue to believe that the pricing practices of Canada Bread were responsible, consistent with industry practice, and above all, lawful,” McCain said in the statement.
