Sun Pharma US arm faces class action suit from ex-employees

Sun Pharmaceutical Industries today said a class action lawsuit has been filed against its US arm by some former employees following the shut down of a manufacturing unit at Detroit in Michigan.
"We confirm that this is regarding a decision from the 6th US Circuit Court of Appeals in a class action lawsuit by some former employees of our US subsidiary company in US following the shut down of company's subsidiary's Michigan facility," the company said in a BSE filing.
It said "there is no material impact of the said judgement on the operations/performance of the company".
In May last year, Sun Pharma had announced that it was closing the Detroit plant, which belongs to its subsidiary Caraco Pharmaceutical Laboratories as part of a manufacturing consolidation process in the US.

While announcing the closure of the plant, the company had said, impacted employees will get compensated with more than their regular entitlement under the severance package.
Meanwhile, the company has in March this year completed its USD 4 billion acquisition of homegrown rival Ranbaxy.
Shares of Sun Pharma ended the day at Rs 884.95 ascrip on BSE, down by 2 per cent.