MONTREAL, Nov. 23 -- A C$6 billion lawsuit has been filed in Ontario Superior Court of Justice against BCE, Canada's largest communications company, and against seven former directors of Teleglobe Inc., a former subsidiary of BCE, by Teleglobe plan administrator Kathy Morgan. Morgan wants a formal declaration that Teleglobe Inc. and its creditors have been oppressed by the former Teleglobe directors and by BCE within the meaning of the Canada Business Corporations Act. She is also seeking a declaration that the former directors breached their fiduciary duty to Teleglobe and failed to act in a manner in keeping with the Canada Business Corporations Act. She is seeking compensation for oppression totalling C$3 billion and damages for breach of fiduciary duty totalling C$3 billion, plus interest and costs.
Under the law, the seven former Teleglobe directors can be indemnified by BCE in connection witht the lawsuit. BCE says it believes the claims made by the plaintiff are without merit, and that it and the former directors will "vigorously" defend itself against the claims.
BCE is the parent of Bell Canada and has 28 million customer connections. Other BCE businesses include the media company Bell Globemedia and Telesat Canada, a satellite operations and systems management company.For more information, visit: www.bell.ca