Dr Reddy’s Laboratories share price fell around 7 per cent intraday on Thursday on reports that a US law firm has filed a class-action suit against the drug company.
However, shares of the pharma major wiped off some of their losses and closed 2.63 per cent down after the drugmaker said it followed all disclosure norms required by the US and Indian regulators.
The stock fell after US law firm Lundin Law made a class action appeal over allegations of misleading statements from the Indian drugmaker. The share price of Dr Reddy’s Laboratories closed at Rs 3,286 on Thursday.
In a BSE filing, the pharma major said, “the company has always adhered to all disclosure requirements both of the Securities and Exchange Commission (SEC) and Indian stock Exchanges; including accounting practices as per the International Financial Reporting Standards (IFRS) and the Indian Accounting Standards. The company has no further comment on what might be advertorial press releases by law firms and refutes all allegations.”
The promoters holding in the company stood at 25.51 per cent while institutions and non-institutions held 41.91 per cent and 32.58 per cent, respectively.