An airport security company is suing the Canadian government for $420 million after losing a contract bid 

November 19,2025

RED FM News Desk

A multinational security company that previously handled airport screening in British Columbia and the Yukon is suing the federal government for more than $420 million after losing a major contract to a competitor last year. 

Universal Protection Service of Canada Corp., operating as Allied Universal Canada, has filed a Federal Court claim seeking damages from the federal government and the Canadian Air Transport Security Authority (CATSA) for lost profits. The company, incorporated in B.C. and part of a global network operating in 85 countries, says it provided screening services in the Pacific region for 12 years until 2024. 

According to the lawsuit, Allied Universal submitted bids in 2023 to oversee screening in B.C., Yukon, and the Prairies. Each regional contract was valued at more than $1 billion annually for up to 15 years. The company alleges CATSA improperly awarded the B.C./Yukon and Prairies contracts to competitor Paladin Airport Security Services Ltd. in November 2023. 

The suit claims Paladin’s bid was unrealistically low and based on a plan to recruit Allied Universal’s staff. Allied is seeking over $420 million in projected lost profits over the life of the contracts. 

None of the allegations have been proven in court, and responses from the federal government and CATSA have not yet been filed. Paladin is not named as a defendant, and Allied Universal’s lawyers have not commented.