MONTREAL – BCE Inc. Friday announced that a lawsuit was filed in the Ontario Superior Court of Justice by Kathy Morgan, in her capacity as Plan Administrator of Teleglobe Inc., against BCE and seven former directors of Teleglobe Inc.
The plaintiff is seeking a declaration that Teleglobe Inc. and its creditors have been oppressed by the former directors of Teleglobe Inc. and by BCE within the meaning of the Canada Business Corporations Act. The plaintiff is also seeking a declaration that the former directors breached their fiduciary duty to Teleglobe Inc. and failed to act in accordance with the standard of care prescribed under the Canada Business Corporations Act.
The plaintiff is seeking compensation for oppression in the amount of $3 billion and damages for breach of fiduciary duty in the amount of $3 billion, in each case plus interest and costs.
With regard to the claims against the former directors, Teleglobe Inc. was at the relevant time a subsidiary of BCE. Pursuant to standard policies and subject to applicable law, the seven former Teleglobe Inc. directors are entitled to be indemnified by BCE in connection with this lawsuit.
“Based on its knowledge of the facts, BCE strongly believes that the claims contained in the plaintiff’s lawsuit are without merit. BCE and the former directors of Teleglobe Inc. will vigorously defend themselves against these claims to the fullest extent,” says the BCE release.
