Dr. Reddy's accused of securities violations in lawsuit

As if Dr. Reddy's Laboratories ($RDY) didn't already have enough problems with U.S. regulators, a major American law firm has accused the India-based drugmaker of violating U.S. security laws involving misleading financial statements. Lundin Law made the allegations in seeking participants in a class-action suit against Dr. Reddy's. The lawyers issued a statement saying the company made false and misleading statements about its financial performance, but did not elaborate. Dr. Reddy's issued a "clarification note" in a press release, saying it "refuted all allegations," and dismissed the law firm's public statement as amounting to nothing more than an "advertorial" to gin up business. A spokesperson said the drugmaker would have "no further comment," except that it adheres to all financial requirements. Lundin said in a release that it has been investigating allegations of "false and misleading" statements by Dr. Reddy's in disclosures of its financial performance, but did not cite the regulations violated. For the past several months, Dr. Reddy's has been dealing with U.S. Food and Drug Administration actions questioning the quality of its production methods and recently a warning letter about three of its India factories. Dr. Reddy's release | Lundin release