Dr Reddy's settles down 3 pc; m-cap erodes by Rs 1,515 croe

Shares of Dr Reddy's today fell by 7 per cent before closing down by nearly 3 per cent on the BSE as a US law firm filed a class-action suit against the drug company.
Following the slump, the market capitalisation of the company eroded by Rs 1,515 crore to Rs 56,069.03 crore.
At close, the stock was quoted at Rs 3,286.80, down by Rs 88.75 or 2.63 per cent on the BSE. The broader BSE Sensex, however, soared 359.40 points, or 1.41 per cent, at 25,841.92.
On the National Stock Exchange, the stock ended at Rs 3,281.10, down 2.54 per cent.

During the day, the stock tanked 7 per cent to touch an intra-day low of Rs 3,140 on BSE, while on NSE it fell to a low of Rs 3,137.85.
On the volume front, over 4.77 lakh shares were traded on the BSE and 38.06 lakh shares exchanged hands on the NSE.

US-based law firm Lundin Law, which specialises in securities litigations is investigating claims against Dr Reddy's Laboratories for possible violations of federal security laws, which the drug maker has denied.
"The investigation is related to allegations that certain statements issued by Dr Reddy's were false and misleading concerning the company's financial performance," Los Angeles-based Lundin Law said in a statement.

Reacting strongly to the allegations, Dr Reddy's said it "has always adhered to all disclosure requirements of both of the Securities and Exchange Commission (SEC) and Indian Stock Exchanges, including accounting practices as per the International Financial Reporting Standards (IFRS) and the India Accounting Standards."
The company has no further comment on what might be "advertorial press release by law firms and refute all allegations", it added.