Canadian manufacturers of masks and other personal protective equipment against COVID-19 are seeking more than $5 billion in damages from the federal government, claiming Ottawa misled them about purchasing and helping to the sale of their products.
In their originating application, filed in Federal Court, the companies and the association that represents them allege that the federal government made “negligent misrepresentations” which encouraged them to invest in innovation, manufacturing and production of personal protective equipment.
The companies and their association claim that over a three-year period, starting in March 2020, the government made misleading statements about procurement, direct aid, flexible procurement and long-term support.
The emergence of COVID-19 in early 2020 prompted governments and public health authorities to implement extraordinary measures to prevent the spread of the infectious disease – including imposing lockdowns. and vaccination requirements and mandatory mask wearing in public.
The originating application alleges that the federal government’s false statements resulted in investment losses of approximately $88 million, but also caused it to lose contracts worth an estimated $5.4 billion over a period of 10 years.
The federal government will have the opportunity to present a defense to the unproven allegations as the case progresses.
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