Dr. Reddy’s Securities Fraud Investigation on Behalf of Dr. Reddy’s Laboratories Ltd. Investors
Securities attorneys with Kehoe Law Firm, P.C. are investigating potential securities fraud class action claims on behalf of investors in Dr. Reddy’s Laboratories Ltd. (“Dr. Reddy’s” or “RDY”) (NYSE: RDY) American Depositary Shares (“ADRs”) concerning whether RDY and certain of its officers and/or directors may have issued materially misleading statements or engaged in other unlawful business practices in violation of federal or state securities laws.
Food and Drug Administration Issues Warning Letter in 2015
On November 6, 2015, Dr. Reddy’s announced that it had received a warning letter issued by the U.S. Food and Drug Administration concerning inadequate quality control standards at three of Dr. Reddy’s manufacturing plants in India. Following this news, RDY’s share price fell $11.75 per share, or more than 18%, to close at $53.50 on November 6, 2015.
German Regulator Denies a “Good Manufacturing Practices” Nod to Dr. Reddy
On August 10, 2017, Dr. Reddy’s disclosed that:
“betapharm Arzneimittel GmbH, Germany (our wholly-owned subsidiary) received a communication from the Regulatory Authority of Germany (Regierung von Oberbayern) last night, that the GMP compliance certificate in respect of the Company’s Formulations Manufacturing Unit 2 plant in Bachupally, Hyderabad is not renewed consequent to the recent inspection of the plant. Pending revocation of the non-compliance notification, the plant will not be able to make any further despatch to the European Union until the next inspection, to be initiated by an invitation from betapharm.”
On this news, Dr. Reddy’s American Depositary Shares fell sharply during intraday trading on August 10, 2017, dropping as much as $2.03 per share, or over 6%, damaging investors.
Have You Purchased or Acquired Dr. Reddy Stock?
If you purchased or acquired RDY common stock or other securities and would like to speak privately with a securities attorney to learn more about the investigation and your potential legal rights, please fill out the form to the right or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; or send an e-mail to [email protected].
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.