TORONTO — The Ontario government has filed a lawsuit against a company it contracted to run a student mental health program, alleging fraudulent misrepresentation and seeking to recoup more than $25 million in public money.

The province is suing Keel Digital Solutions, a company tied to the controversial Skills Development Fund, for alleged issues with a different contract it had with the Ministry of Colleges and Universities.

Ontario Provincial Police are also investigating the results of an audit on Keel’s funding from the Ministry of Colleges and Universities after a referral from the province.

The government alleges in its lawsuit that between 2022 and 2025, Keel “provided false and misleading quarterly reports of their corporate performance measures,” which were the basis for its payments.

None of the allegations have been tested in court, and Keel did not immediately respond to a request for comment.

A company spokesperson has previously said it has complied with all laws and contractual obligations.

Keel Digital Solutions was closely scrutinized during the fall sitting of the legislature as one of the recipients of the Ministry of Labour’s $2.5-billion Skills Development Fund, a program the auditor general has found was not fair or transparent.

Labour Minister David Piccini came under sustained fire from opposition parties calling for his resignation, particularly since media reports say one of Keel’s lobbyists is a close friend of Piccini’s.

This report by The Canadian Press was first published Jan. 9, 2026.

Allison Jones and Liam Casey, The Canadian Press