Dr. Reddy’s Laboratories Ltd has received confirmation from the U.S. Securities and Exchange Commission (SEC) that its investigation into alleged improper payments to healthcare professionals has been concluded with no enforcement action recommended. The probe, initiated in 2020, saw full cooperation from Dr. Reddy’s with SEC, DOJ, and SEBI authorities.
Dr. Reddy’s Laboratories Ltd announced that the SEC has formally closed its investigation into potential violations of the U.S. Foreign Corrupt Practices Act (FCPA). The inquiry, launched in November 2020 following an anonymous complaint, focused on alleged improper payments to healthcare professionals in Ukraine and other countries.
Throughout the process, Dr. Reddy’s cooperated extensively with the SEC, the U.S. Department of Justice (DOJ), and India’s Securities and Exchange Board (SEBI). The company also engaged an independent U.S. law firm to conduct an internal review.
The SEC’s decision not to pursue enforcement action marks a significant relief for the Hyderabad-based pharmaceutical giant, which has ADRs listed on the New York Stock Exchange. Industry observers note that this outcome strengthens investor confidence and clears regulatory uncertainty that had lingered for over five years.
Key Highlights
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Investigation Timeline: Began in November 2020 after anonymous complaint.
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Focus: Alleged improper payments to healthcare professionals in Ukraine and other countries.
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Authorities Involved: SEC, DOJ, SEBI.
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Company Response: Full cooperation and independent internal review.
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Outcome: SEC concluded investigation with no enforcement action.
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Impact: Boosts investor confidence and regulatory clarity.
Sources: ScanX News, FCPA Professor, Foreign Corrupt Practices Act Dataset