Dr Reddy’s gets served with class action lawsuit

Pharma major Dr Reddy’s Laboratories said it has been served with a class action lawsuit, originally announced in August, related to public disclosures made about regulatory action against the company.

“Further to our intimation dated August 28, 2017 with regard to US Securities Class Action Lawsuit, we would like to inform you that the US Securities Class Action Lawsuit has been served on the company in the US by the lead plaintiff,” Dr Reddy’s said.

The suit is on behalf of investors who purchased or acquired Dr Reddy’s shares on the New York Stock Exchange between June 17, 2015 and August 10, 2017.

It alleges that the “company made materially false and or misleading statements or omissions” in connection with its corporate quality system.

Specifically, the suit cites disclosures regarding a warning letter from the US Food and Drug Administration received in November 2015 and a letter from the Regierung von Oberbayern in Germany on August 10, 2017.

The suit, filed in the US District Court of New Jersey, seeks damages to compensate the purported class of investors for a purported decline in the company’s share price caused by the alleged misstatements or omissions.

In November 2015, US FDA has issued a warning letter on Dr Reddy’s three units located in Andhra Pradesh and Telangana for violation of current good manufacturing practices.