Dabur India, a prominent consumer goods firm known for its Vatika Shampoo and Honitus cough syrup brands, is currently contending with a legal challenge as its subsidiaries face lawsuits in the United States and Canada. Customers have alleged that the use of hair relaxer products from these companies has led to severe health issues, including ovarian cancer, uterine cancer, and more.
In an exchange filing, Dabur India revealed that these cases are currently in the pleadings and early discovery phases of litigation. The company has taken a firm stance, describing the allegations as based on “unsubstantiated and incomplete” studies.
Approximately 5,400 cases have been consolidated as part of a multi-district litigation before a U.S. District Court in Illinois. The lawsuits target several companies, including Dabur India’s subsidiaries, such as Namaste Laboratories, Dermoviva Skin Essentials, and Dabur International.
Despite the legal challenges, Dabur’s subsidiaries have denied any liability and have retained legal counsel to defend their positions. However, the financial implications for Dabur India remain uncertain at this stage, as the outcome of settlements or verdicts could have significant repercussions. The company anticipates that defense costs may surpass the materiality threshold in the near future.
In response to inquiries regarding the ongoing litigation, Dabur India did not provide additional details beyond what was disclosed in the exchange filing.
This legal dispute adds a layer of complexity to the Indian consumer goods giant, as it strives to address the concerns and allegations raised by a significant number of customers in the US and Canada. The outcome of the litigation is closely watched by stakeholders as it may have significant implications for the company’s financial health and reputation.
Sources By Agencies