Airport security firm sues Canada for $420 million after failed contract bid

Canadian Air Transport Security Authority badges are pictured at Vancouver International Airport in Richmond B.C., on Wednesday, Sept. 18, 2024. THE CANADIAN PRESS/Ethan Cairns

A multinational security firm that used to provide screening services at airports in British Columbia and the Yukon is suing the Canadian government for more than $420 million after being replaced by a rival bidder last year.

Universal Protection Service of Canada Corp., known as Allied Universal Canada, filed a statement of claim in Federal Court this week seeking damages for lost profits from the federal government and the Canadian Air Transport Security Authority.

The company says in its claim that it is privately held and incorporated in B.C., and provides security services through affiliates in 85 countries.

The claim says the company handled airport screening services for 12 years up until 2024 in the Pacific region, which covers airports in B.C. and Yukon, and it submitted bids to the authority in 2023 to handle screening in B.C., Yukon and the Prairies region.

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The lawsuit says each regional contract was worth upwards of $1 billion a year for up to 15 years, and Allied Universal says the security authority wrongfully awarded two regions to rival Paladin Airport Security Services Ltd. in November 2023.

The lawsuit, which alleges Paladin’s bid was “improvidently low” and relied on a plan to “poach” Allied employees, seeks more than $420 million in estimated lost profits over the 15-year terms of the contracts.

The allegations in the lawsuit have not been tested or proven in court and the federal government and the Canadian Air Transport Security Authority have not filed responses to the claim.

Paladin Airport Security Services is not named as a defendant in the lawsuit, and Allied Universal’s lawyers did not immediately respond to a request for comment.

This report by The Canadian Press was first published Nov. 19, 2025.