Freedom Mobile Dealers Commence Litigation Against Freedom Mobile Distribution Inc.
TORONTO, April 14, 2022 /CNW/ - Association of F-Branded Wireless Dealers is an association of 22 independent franchised dealers and dealer groups which have been operating approximately 180 Freedom Mobile stores in Ontario and Alberta. The members of the Association represent a large majority of the Freedom Mobile dealerships operating in Canada.
On Thursday, April 14, 2022, three lawsuits were filed on behalf of members of the Association against Freedom Mobile Distribution Inc., a subsidiary of Shaw Communications Inc. Two of the actions were launched in the Ontario Superior Court of Justice. One was launched in the Alberta Court of Queen's Bench.
For many years, the network of independent Freedom dealers has occupied an important space in the wireless telecommunications market in Canada. The dealer network has served segments of the Canadian market for wireless products that have been perceived by the dealers to otherwise have been underserviced by the other wireless carriers. The Freedom dealers have been strong competitors to the Rogers "Fido" brand in their market focus.
Since early 2020, and increasingly following the public announcement of the transaction entered into between Shaw and Rogers whereby Rogers was to acquire all of the assets of the Freedom Mobile network, the Freedom dealers are alleging that they and therefore the markets they service have been negatively and severely impacted by Freedom's programming and compensation plans effecting the network. The lawsuits seek damages for each of the dealers representing the alleged losses they have suffered as a result of Freedom's operation of their various channels of distribution and in the compensation paid to the dealers.
Although the Freedom dealers do not know the future of the Freedom brand as a result of the uncertainty as to who will in fact acquire the assets of Freedom Mobile, the dealers remain hopeful that they will once again have the opportunity to remain a strong force in the marketplace for the benefit of many Canadians.
SOURCE Sotos LLP
Questions about the lawsuits or this press release may be directed to Allan D.J. Dick of Sotos LLP in Toronto at [email protected] or 416.805.8989.
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