Description: The Ontario Court of Appeal has ruled Subway can proceed with its $210 million legal action against the CBC. In a broadcast aired in 2017, CBC’s “Marketplace” stated that genetic tests performed at Trent University concluded that close to 50% of the DNA in Subway’s chicken sandwiches was actually soy DNA. Subway has countered the tests were flawed and that CBC’s actions have harmed the business.

Date:  January 19, 2021

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/subway-defamation-lawsuit-cbc-chicken-1.5879467

Discussion points:

1) Had you heard about this controversy?

2) Are you a regular Subway customer? Does this story impact your habits?

3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, the section starting at the bottom of page 10-9 deals with provisions and contingent liabilities. What issues would a company consider in determining how to disclose a major lawsuit in its financial statements?