Drugmaker Dr. Reddy's Laboratories Ltd. on Monday said a class action lawsuit has been filed against it in the U.S. by an investor alleging misleading statements in violation of U.S. federal securities laws.
The lawsuit filed at 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 mis-statements or omissions, Dr. Reddy's said in a filing to the BSE.
The company has yet not been served with the lawsuit and cannot comment on the “specific allegations in the pending litigation other than to state that the company believes the asserted claims to be without merit”, it added.
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 U.S. District Court for the District of New Jersey alleging violation of the U.S. federal securities laws.Dr. Reddy's Statement
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, it added.
Also Read: U.S Law Firms Exploring Claims Against Dr. Reddy's
Dr. Reddy's said the lawsuit alleged that the company made materially false and/or misleading statements or omissions in connection with its corporate quality system.
The allegation is specifically in connection with a warning letter from the U.S. FDA dated November 6, 2015 and a letter from Regierung von Oberbayern in Germany, dated August 10, 2017, it added.
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.
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