No material impact of US court order, says Sun Pharmaceuticals (spot)

Pharmaceutical major Sun Pharmaceuticals has said a US court order in a class action lawsuit against its US subsidiary will not have a material impact on its operations.

The company made this submission in its response to the stock exchange today following reports that a US appeal court had upheld a local district court order against its subsidiary Caracao Pharmaceutical Laboratories. The suit was initiated by an employees of Caracao who alleged that they were terminated in 2009 without mandatory 60 day notice under law.

The employees had complained that the company had failed to give them a notice while closing a drug manufacturing facility in Michigan, US. Caracao had cited mass seizure of its products by the Food and Drugs Administration (USFDA) as an unforeseeable business circumstance and sought excuse from complying with rules which require it to give 60-day notice but the US court refused to accept the plea.

"We confirm that this is regarding a decision from the 6th US Circuit Court of Appeals in a class action lawsuit by some former employees of our US subsidiary company in US following the shut down of company's subsidiary's Michigan facility," Sun Pharmaceuticals said in a stock exchange notification.

 


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