Updated: March 21, 2019
Status: Ongoing Case
Labaton Sucharow was appointed lead counsel on November 21, 2017 in this securities class action against Dr. Reddy’s Laboratories, a multinational pharmaceutical company based in Hyderabad, India.
On March 5, 2018, the plaintiffs filed an amended complaint alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the SEC on behalf of entities who purchased or otherwise acquired publicly traded securities of Dr. Reddy’s Laborities, Ltd. from November 27, 2014 through September 15, 2017. Specifically, Dr. Reddy’s misled investors about having robust quality processes and systems in place at its manufacturing facilities. Dr. Reddy’s shares dropped after a series of disclosures by the FDA and other regulators revealed that conditions at three key Indian manufacturing facilities violated FDA regulations, causing the company to delay production of a key product and miss earnings. The court heard oral argument on defendants’ motion to dismiss on August 8, 2018. On March 21, 2019, the court granted in part and denied in part defendants' motion to dismiss. Discovery is ongoing.
The case is In re Dr. Reddy’s Laboratories Limited Securities Litigation, No. 17-cv-06436 (D. N.J.). Labaton Sucharow represents lead plaintiff Public Employees’ Retirement System of Mississippi.