New Delhi: Drug firm Dr. Reddy’s Laboratories on Wednesday said it has been served a securities class action lawsuit in the US for alleged violations of federal securities laws.
The lawsuit filed in the District Court for New Jersey seeks damages to compensate the class of investors for a ‘purported decline’ in the company’s share price allegedly caused by the misstatements or omissions.
“US Securities class action lawsuit has been served on the company in the US by the lead plaintiff,” Dr. Reddy’s Laboratories said in a filing to BSE.
As intimated earlier, the company believes that the asserted claims are without merit and intends to vigorously defend itself against the allegation, it added.
Regarding the lawsuit, earlier in August, Dr Reddy’s had said: “On August 25, 2017, a law firm representing a purported investor in the company filed a purported class action lawsuit against the company, its CEO, and CFO in the US District Court for the District of New Jersey alleging violation of the US federal securities laws.”
The company had said that the lawsuit represents a class of investors who purchased or otherwise acquired the company’s publicly traded shares on the New York Stock Exchange between June 17, 2015, through August 10, 2017.
The lawsuit alleged that the company made materially false and/or misleading statements or omissions in connection with its corporate quality system, it had added.
The allegation is specifically in connection with a warning letter from the US FDA dated November 6, 2015, and a letter from Regierung von Oberbayern in Germany, dated August 10, 2017, Dr. Reddy’s said.