Dr Reddy’s plummets on US lawsuit over ‘corporate quality’
28 Aug 2017
Shares of Dr Reddy's Laboratories dropped over 2 per cent today after a law firm representing an investor in the company filed a class action lawsuit in New Jersey against the company, its chief executive officer and chief financial officer alleging violations of US federal securities laws.
Dr Reddy's said in a filing to the BSE that the lawsuit alleges that the company made "materially false and/or misleading statements or omissions" related to its ''corporate quality system".
The company added that it cannot comment on the specific allegations except to state ''the asserted claims to be without merit".
Promoters held 26.78 per cent stake in the company as of June 2017. For the quarter ended 30 June 2017, the company reported total revenue at Rs2,089.70 crore with a net loss of Rs7.30 crore.
The scrip touched a 52-week high of Rs3,394.95 on 28 October 2016 and a 52-week low of Rs1,901.65 on 11 August 2017.
