Consumer goods company Dabur India on Wednesday said that three of its foreign subsidiaries have been sued in federal and state courts in the United States and Canada over allegations that their products have caused ovarian and uterine cancer, among other health problems.
Dabur India’s subsidiaries Namaste Laboratories, Dermoviva Skin Essentials and Dabur International, among others, have been named as defendants in 5,400 cases, the company said in an exchange filing on Wednesday. The federal cases against the company were consolidated as a multi-district litigation before a district court in the United States’ Illinois, it said.
The case pertains to complaints that hair relaxer products manufactured by Dabur contain chemicals that have allegedly caused cancer and other health problems among users.
Dabur said that it is challenging the adequacy of the complaints and is exchanging requests for information and documents in some cases.
“Namaste, Dermoviva and DINTL [Dabur International] deny liability and have retained counsel to defend them in these lawsuits as these allegations are based on unsubstantiated and incomplete study,” the company said.
“Currently, the cases are in the pleadings and early discovery phases of litigation,” the exchange filing said. “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.”
On Thursday, the price of Dabur India’s shares fell by 2.25%.
This comes days after, on Tuesday, the company said that it had received a Goods and Service Tax demand notice of Rs 320.6 crore. In a regulatory filing, the company said that it will challenge the tax notice by filing its reply before the authorities.
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