NEW YORK--(BUSINESS WIRE)--Scott + Scott, LLP, a global investor rights law firm, has opened an investigation to determine whether Dr. Reddy’s Laboratories, Ltd. (RDY) violated the federal securities laws by issuing materially misleading information to the investing public.
On November 5, 2015, the Director of the FDA’s Center for Drug Evaluation and Research sent a Warning Letter to Dr. Reddy’s relating to inadequate quality controls at three key Indian facilities manufacturing raw pharmaceutical materials and oncology medicines. The FDA stated that Dr. Reddy’s may not receive U.S. approvals for any new applications or supplements listing Dr. Reddy’s as a drug product or API manufacturer, and that FDA may refuse admission into the U.S. of drugs manufactured at these three plants until the problems were fixed.
The FDA also required Dr. Reddy’s, within 15 working days of receipt of the Warning Letter, to notify the FDA in writing of specific steps taken to correct their violations and deviations, including supporting documentation of the conduct of a third-party assessment, risk assessments, and a comprehensive management strategy for corrective action, including implementing new controls, product recalls, additional. On this news, the one-day stock drop was 18%, from $65.25 to $53.50, and continued to fall over the next 3 trading days for a total loss of 25%.
To learn about the investigation, go to: http://scott-scott.com/contact.htm. There is no cost or obligation to you.
You can also call Joseph Halloran, Esq. at (646) 582-0121 or email email@example.com for information about the investigation.
Scott + Scott, LLP has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States.