SEC Concludes Investigation Under FCPA Review
Dr. Reddy's Laboratories Ltd has received a formal communication from the US Securities and Exchange Commission stating that it has concluded its investigation into allegations of improper payments and does not intend to recommend any enforcement action at this time.The investigation was initiated following an anonymous complaint that alleged improper payments to healthcare professionals in Ukraine and potentially other countries. According to the company’s exchange filing, such payments could have constituted violations of US anti corruption laws, including the US Foreign Corrupt Practices Act.
Company Disclosed Matter to Multiple Regulators
Dr. Reddy's had proactively disclosed the matter to the US Department of Justice, the SEC, and the Securities and Exchange Board of India.At the direction of a committee of its Board of Directors, the company engaged a US law firm to conduct a detailed internal investigation into the allegations. Earlier, Dr. Reddy's had cautioned that the probe could result in regulatory or enforcement action in the United States or other jurisdictions, and potentially lead to civil or criminal sanctions under applicable laws.
Cooperation With Regulators and Internal Review
Following its disclosures, the company said it fully cooperated with both the DOJ and the SEC. It provided requested documents and information, and continued to engage with the regulators through submissions and presentations.The engagement covered the initial complaint as well as additional complaints relating to certain other markets.
SEC Letter Dated February 23, 2026
In a letter dated February 23, 2026, the SEC informed the company that, based on the information currently available, it has concluded its investigation and does not intend to recommend enforcement action at this stage.However, the SEC clarified that the communication was issued pursuant to Securities Act Release No. 5310. It stated that the letter should not be interpreted as an indication that the company has been exonerated or that no future action may arise from the staff’s investigation.
Dr. Reddy's Share Price Movement
Shares of Dr. Reddy's Laboratories ended marginally lower on Tuesday, February 24, closing 0.57 percent down at ₹1,300.00 on the NSE.The development marks the closure of a regulatory review process that had stemmed from allegations of potential anti corruption violations, with the SEC currently not recommending enforcement proceedings.
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