April 10, 2019 - 2:57 PM
HALIFAX - Atlantic Canada’s largest media company has launched a multimillion-dollar lawsuit against Transcontinental Inc. over its 2017 acquisition of the Montreal-based company's newspapers in the region.
SaltWire Network, which owns 35 newspapers in Atlantic Canada, is accusing Transcontinental of overstating its printing and distribution business and misrepresenting revenue streams of the acquired assets.
The lawsuit filed Wednesday in Nova Scotia's Supreme Court claims Transcontinental substantially overstated revenues, hid material facts about the condition of the assets and was not forthcoming about a number of questionable business practices.
SaltWire says these factors led to it suffering significant damages and losses.
It is seeking compensation for general and special damages, as well as aggravated and punitive damages, interest and costs.
SaltWire chief operating officer Ian Scott said the company has been unsuccessful in its attempts to reach a settlement with Transcontinental that avoids the courts.
"In any large transaction, the purchaser must rely on timely, accurate and complete information from the seller. When material elements are hidden or misrepresented the purchaser is placed in an untenable position," he stated.
Transcontinental says it is aware of the legal proceedings but hasn't yet received the legal documents.
"We intend to defend ourselves. These matters being before the courts, we will not provide any further comments," said spokeswoman Patricia Lemoine.
Companies in this story: (TSX:TCL.A)
News from © The Canadian Press, 2019