Dabur Shares Decline on Pending Litigations Involving US Subsidiaries

19 Oct 2023 , 02:42 PM

Dabur Limited’s stock experienced a sharp decline with heavy trading volumes on October 19 following its disclosure on October 18 regarding ongoing litigations involving its three US subsidiaries. The litigations are in their early discovery phases and pertain to allegations that a hair-relaxer product may contain chemicals linked to ovarian cancer, uterine cancer, and other health concerns. These cases have been filed in federal and state courts in the US and Canada, with the federal US cases consolidated as a Multi-District Litigation (MDL).

Dabur’s subsidiaries, namely Namaste, Dermoviva, and DINTL, have denied any responsibility and enlisted legal representation to defend themselves against these lawsuits. The defense argument centers on the claim that the allegations rely on an incomplete and unverified study.

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