Facing lawsuit in US, Dr. Reddy’s Laboratories loses steasm

With the possibility of Dr. Reddy’s Laboratories facing a lawsuit in the United States, the company’s shares dipped low. As per a news update, a law firm representing an investor of Dr. Reddy’s Laboratories has filed a purported class action lawsuit against the company on August 25. The same has been notified to tje exchanges on Monday. 
 
The plaintiff in the lawsuit purports to represent a class of investors who purchased or otherwise acquired the company’s publicly traded shares on the New York Stock Exchange from June 17, 2015 to August 10, 2017. The lawsuit alleges that the company made materially false and/or misleading statements or omissions in connection with its corporate quality system and specifically in connection with a warning letter from the US Food and Drug Administration (USFDA) dated November 6, 2015, and a letter from the Regierung von Oberbayern in Germany dated August 10, 2017. 
 
The lawsuit seeks damages to compensate the purported class of investors for a purported decline in the company’s share price allegedly caused by the alleged misstatements or omissions. The company will respond to the allegations after it has been served with the lawsuit and as and when it may be required to do so by the court.  
 
The share price of Dr. Reddy's Laboratories was trading at Rs 2,041, down by 2.25% on the BSE at 1054 hours.