Robbins LLP: Dr. Reddy’s Laboratories Limited (RDY) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Dr. Reddy’s Laboratories Limited (NYSE: RDY). The complaint is brought on behalf of all purchasers of Dr. Reddy’s securities between June 17, 2015 and August 10, 2017, for alleged violations of the Securities Exchange Act of 1934 by Dr. Reddy’s officers and directors. Dr. Reddy’s operates as an integrated pharmaceutical company worldwide.
Dr. Reddy’s Accused of Misrepresenting the Compliance Status of Its Facilities
According to the complaint, in Dr. Reddy’s 2015 Form 20-F, the company stated, “We are fully dedicated to quality and have robust quality processes and systems in place at our developmental and manufacturing facilities to ensure that every product is safe and of high quality.” Dr. Reddy’s further noted that the company spends significant time and money to help ensure that it is fully compliant with the U.S. Food and Drug Administration’s (“FDA”) current Good Manufacturing Practice (“cGMP”) regulations. However, Dr. Reddy actually lacked an effective corporate quality system. On November 6, 2015, Dr. Reddy’s revealed that it had received a warning letter from the FDA noting the company’s failure to: (i) maintain complete data from all laboratory tests; (ii) prevent unauthorized access or changes to data; and (iii) maintain all quality-related documents appropriately, among many other transgressions. Then, on August 10, 2017, the Regulatory Authority of Germany sent notice that one of Dr. Reddy’s plants lost its cGMP compliance certificate. Since Dr. Reddy’s compliance troubles became public, the company’s stock fell nearly 53% to close at $30.33 per share on August 10, 2017.
Dr. Reddy’s Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.