Fifteen Canadian mask and respirator manufacturers are suing the federal government for $5.4 billion in damages, claiming that Ottawa broke its promises to buy their products to fight the spread of COVID-19.
In a statement of claim filed in Federal Court last week, the companies and their industry association, the Canadian Association of PPE Manufacturers (CAPPEM), made “negligent misrepresentations” that prompted them to invest in personal protection equipment innovations, manufacturing and production.
The federal government will have an opportunity to file a defence to the unproven allegations as the court case proceeds.
The firms claim they lost $88.4 million in equipment and research and development investments made in connection with the federal program, “Canada’s Plan to Mobilize Industry to Fight COVID-19,” launched in March 2020.
They then say they watched as federal spending on medical supplies adding up $11.5 billion mostly went to importers, CAPPEM spokesman Barry Hunt told Global News.