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regular-article-logo Wednesday, 08 May 2024

Three overseas subsidiaries of Dabur India face multiple lawsuits in US, Canada

The three arms facing litigations are Namaste Laboratories LLC, Dermoviva Skin Essentials Inc and Dabur International Ltd

Our Special Correspondent Mumbai Published 20.10.23, 08:32 AM
Representational image

Representational image File image

Three overseas subsidiaries of Dabur India are facing multiple lawsuits in the federal and state courts in the US and Canada over allegations that their hair-relaxer products have caused ovarian cancer, uterine cancer and other related health issues.

The three arms facing litigations are Namaste Laboratories LLC, Dermoviva Skin Essentials Inc and Dabur International Ltd.

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“Certain consumers in the hair relaxer product industry have alleged that some industry players or 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,” the FMCG major said in a regulatory filing.

“Cases have been filed in both federal and state courts in the United States and Canada. The federal cases were consolidated as a Multi-District Litigation, also referred to as MDL, before the United States District Court for the Northern District of Illinois,” the company added.

It disclosed around 5,400 cases in MDL, which named Namaste, Dermoviva and DINTL as defendants, along with certain other industry players.

Dabur shares fell 1.63 per cent to Rs 525.45 on the BSE.

Dabur further said that the three subsidiaries “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 all these cases are in the pleadings and early discovery phases of litigation, which means the concerned parties are challenging the adequacy of the plaintiffs’ complaints.

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