Taro files law suit against Sun in Israel

Written by Agencies | New York | Updated: Sep 30 2009, 19:12pm hrs
Israeli drug firm Taro Pharmaceuticals has filed a law suit in a US district court against Mumbai-based Sun Pharmaceutical Industries alleging violation of non-disclosure agreement and misleading shareholders.

Taro, which is fighting a hostile take over bid by Sun, said the Indian firm had wrong fully exploited its highly confidential and proprietary business information to launch repeated competitive attacks on sales of Taro products in the US.

"In their effort to take control of Taro, Sun and its affiliates have also misappropriated and misused confidential information of Taro which Sun obtained under a written confidentiality agreement dated February 16, 2007 ...," Taro said in its petition to Southern District Court of New York.

Both companies are listed on the New York Stock Exchange.

Taro has lost and is continuing to lose sales, customers, and business opportunities as a direct result of Sun's conduct, the Israeli firm said.

It also alleged that Sun is seeking to coerce shareholders of Taro to sell their Taro stock to it for a grossly inadequate price by means of a open offer statement, which has been amended over 25 times, and extended as recently as mid-September, which violates US laws.