Alberta medical supplier targets political web series with $6M defamation lawsuit

A prominent Alberta medical supplier embroiled in controversy over government supply contracts is suing an independent online publisher for $6 million, alleging defamation in coverage of the company.

A lawsuit filed on behalf of MHCare and its Edmonton-based CEO, Sam Mriache, claims online reporting done by The Breakdown defamed the supplier.

A recent episode of the political show focused in on the links between MHCare, Mraiche and the UCP Government.

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Podcaster Nate Pike pointed out the company was awarded two controversial contracts from the province he alleges were sole-sourced, and Mraiche later invited multiple politicians into a free VIP box for Edmonton Oilers playoff hockey games.

Mraiche also received the Queen’s Platinum Jubilee Medal from UCP Minister Muhammad Yaseen in 2023.

Provincial deals

MHCare was part of a 2022 deal with the province to buy children’s pain medication from Istanbul-based company Atabay.

Shipments of the medicine were greatly delayed, and once the Turkish acetaminophen arrived, it was widely criticized by frontline health care workers over safety concerns.

Use of the medication was eventually halted in hospitals. The deal cost taxpayers roughly $80 million.

Two years before that, the Mraiche Holding Corporation struck a deal to supply Alberta Health Services with Vanch face masks during the pandemic.

The PPE was widely criticized by health-care workers at the time of its rollout, prompting the creation of a focus group to discuss problems with the face coverings.

The Breakdown’s reporting claims Mraiche ran the Mraiche Holding Corporation at the time of the deal.

The corporation shares an Edmonton address with MHCare.

Statement of claim

Pike and The Breakdown claim the two deals were done directly between Mraiche and the province and they were both overpriced at the expense of taxpayers.

CTV News reached out to MHCare and Mraiche multiple times but didn’t hear back by publication.

The CEO’s lawyer offered no comment when reached by phone.

The filed statement of claim cites lengthy social media exchanges as containing “defamatory words” and “harassing behaviour.”

It says Pike directly accused Mraiche of “selling and/or distributing medications that are of poor quality” and of ”bribing, inappropriately influencing … members of the Government of Alberta for (his) own benefit.”

It says Mraiche has “suffered significant damage to (his) reputation, including loss of public trust.”

The suit seeks “general damages in the amount of $5,000,000” and “exemplary damages in the amount of $1,000,000.00, or such other amounts as may be proven to deter the defendants or others from such conduct in the future.”

Statement of defence

A statement of defence filed by Pike Monday “denies all allegations and claims contained in the statement of claim and holds the plaintiff to strict proof thereof.”

He alleges the ”claims are frivolous and vexatious or otherwise an abuse of process.”

Pike told CTV News he stands by what he’s said and posted.

“The vast majority of the stuff that we’ve covered has been reliant on existent journalism,” he said. “We used stories as foundational work for the episode that we did that came from the Globe and Mail, Global News, CBC News and CTV News.”

“I think there’s a lot of really important things that live inside the story that people really should be paying much closer attention to.”

Pike even says he tried to contact the plaintiff company for comment before going public.

“One of the things that we did before we started going through the story was we made sure we reached out to as many people that we could find contact information for,” he said.

“So we did reach out to MHCare to request comment, and we did actually hear initially in the run-up to the episode from a law firm that said Mr. Mracihe was very enthusiastic about freedom of speech.”

Community support

Pike has launched an online fundraiser to mount a legal response. As of Tuesday, it’s raised almost $75,000.

“I think it speaks to the frustration that exists in regard to the lack of transparency around all of these topics,” Pike said.

Mount Royal University political scientist Duane Bratt has donated to the fund.

He says the claim feels like a SLAPP suit, a legal tactic often used to censor or intimidate critics by burdening them with defence costs.

“I think this is an infringement on freedom of the press,” he said. “I think this is political intimidation, and I don’t think that’s good for democracy.”

As for the story, Bratt believes it was fair and accurate.

“It pieced together a whole bunch of different stories into one narrative, and (Pike) relied on government documents, he relied on photographs, and he relied on previous media reporting. All he did was tell the story of all these different ideas. So I actually thought it was a really good piece of work.”

Pike echoes the sentiment.

“I personally still strongly believe that everything we’ve said on the show is absolutely true,” he told CTV News.

“I think it’s important that people are aware of what’s going on behind the curtains in the corridors of power.”

“I wouldn’t have put anything out there that I wasn’t confident was true.”

Provincial response

Finance Minister Nate Horner, Infrastructure Minister Peter Guthrie and Utilities Minister Nathan Neudorf have admitted to attending the Stanley Cup playoffs as guests of Mraiche.

Premier Danielle Smith says she also accepted free tickets, but from Explore Edmonton and Invest Alberta.

Smith did, however, sit in a VIP box at least one time with Mraiche.

Public Safety Minister Mike Ellis and Sport Minister Joseph Schow went to at least one game each.

All the cabinet ministers and the premier insist they did not break conflict-of-interest rules.