MDS starts legal action over cancelled MAPLE project

MDS, a Canadian provider of products and services to the global life sciences markets, has served Atomic Energy of Canada Limited with notice of arbitration proceedings. MDS will be seeking an order to compel AECL to fulfil its contractual obligations under its 2006 interim and long-term supply agreement and, if not granted, will ask for significant monetary damages. The company has concurrently filed a court claim for C$1.6 billion ($1.57 billion) in damages against AECL, for negligence and breach of contract, and against the government of Canada, for inducing breach of contract and for interference with economic relations.