Halifax-based SaltWire Network has filed a lawsuit against Transcontinental Inc., the CBC reports.
SaltWire bought 27 papers from Transcontinental in spring 2017.
"Transcontinental substantially overstated the revenues the business would produce, hid material facts regarding the condition of its assets and was not forthcoming about a number of questionable business practices," SaltWire said in a press release.
The lawsuit was filed in Nova Scotia's Supreme Court.
“We have not received the lawsuit yet, so we haven’t had the opportunity to review it,” said Francois Olivier, president of TC Transcontinental, said in a statement. “We are confident that the sale of our media assets in Atlantic Canada was conducted based on fair, accurate and timely information. We intend to vigorously defend ourselves in court.”
Meanwhile, SaltWire said changes are afoot at papers it owns in Newfoundland and Labrador. The Western Star will become a free community weekly paper, no longer a paid-for daily. The Labradorian and the Aurora will blend into one subscription-based paper, the Labrador Voice.