Dabur shares drop 2.5% after lawsuits filed in US, Canada
Dabur today fell up to 2.5% to day's low at Rs 520.45 after it was reported that its subsidiaries were among companies sued in the US and Canada by customers alleging that the use of hair relaxer products had caused ovarian cancer, uterine cancer and other health issues.
«Currently, the cases are in the pleadings and early discovery phases of litigation. There are various motions pending as well.
Since we are in the initial stage of litigation, any final quantum of claim amount is neither probable nor estimable,» Dabur informed stock exchanges.
Cases have been filed in both federal and state courts in the United States and in Canada against Namaste Laboratories, Dermoviva Skin Essentials and Dabur International — all of which are subsidiaries of Dabur India Limited.
Certain consumers in the hair relaxer product industry have alleged that some industry players / defendants sold and/or manufactured hair relaxer products that contain certain chemicals and that the use of these hair relaxer products has caused ovarian cancer, uterine cancer and other health issues in the users. Currently, there are approximately 5400 cases in the MDL which name Namaste, Dermoviva and DINTL as defendants along with certain other industry players.
«Namaste, Dermoviva and DINTL deny liability and have retained counsel to defend them in these lawsuits as these allegations are based on unsubstantiated and incomplete study,» Dabur said.
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