A class-action lawsuit has been filed against pharma major Dr Reddy’s Laboratories Ltd in the US District Court of New Jersey for alleged violation of US federal securities law.

A law firm representing some investors in the Hyderabad-based company “filed a purported class-action lawsuit against the company, its CEO and CFO,’’ Dr Reddy’s said in an update issued here on Monday.

The firm is representing a class of investors who purchased or acquired Dr Reddy’s shares on the New York Stock Exchange between June 17, 2015 and 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, specifically in connection with 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.

Compensation sought It 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.

Dr Reddy’s has not been served with the lawsuit yet. “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,” Dr Reddy’s said, adding that it believed that the claims made by some of the investors had no merit.

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

While active pharmaceutical ingredients plant in Miryalaguda, Telangana has got clearance, Duvvada and Srikakulam plants in Andhra Pradesh have completed re-inspections.

Dr Reddy’s scrip lost 2.01 per cent on the Bombay Stock Exchange to end at ₹2,045.95 on Monday.

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