NEW DELHI, June 7: Drug firm Aurobindo Pharma Friday said the company, its Director P V Ramprasad Reddy and step-down subsidiary Aurolife Pharma LLC, have been made party to a litigation proceeding in the US.
The drug firm in a regulatory filing however said it is yet to receive a copy of the proceeding and denied what it said were ‘baseless allegations’ against the company.
“Company, Aurolife Pharma LLC, a step-down wholly owned subsidiary in US and P V Ramprasad Reddy, our Director have been made party to a litigation proceeding in the United States of America,” Aurobindo Pharma said in a filing to BSE.
The company was reacting to a media report as per which, bankrupt US drug firm Aceto Corporation has accused Aurobindo Pharma and its founder P V Ramprasad Reddy of sabotage and has sought damages in a case filed in the US.
“On preliminary examination of the compliant, the company has been advised by its legal advisors that the case appears to be devoid of merits and consists of baseless allegations against the company, Aurolife and P V Ramprasad Reddy alleging fraud, negligent misrepresentation and the failure of the company and Aurolife to fulfill their obligations, inter-alia, under a supply contract entered into with the company”, Aurobindo Pharma said.
In a filing on BSE, the company said: “We deny all the contentions and allegations set out and alluded to in the media report.”
Shares of Aurobindo Pharma were trading at Rs 618.55 per scrip on BSE, down 0.92 per cent from its previous close. (PTI)