Sun Pharma arm faces class action suit in US suit

Shares of Sun Pharmaceutical slid on July 23 amid reports that a class action law suit has been filed in the US District Court against its arm Caraco Pharma. According to reports, US-based law firm Izard LLP has filed the case on behalf of some of Caraco's shareholders in a Michigan court on July 17 for allegedly not disclosing adequate information about US regulatory action that hurt its shares. Earlier on June 25, the US Food and Drug Administration (FDA) had seized all drug products manufactured by generic drug maker Caraco at its Michigan facilities in Detroit following repeated violations of the manufacturing standards. The USFDA started inspections at Caraco’s Michigan plant in May 2008 and issued Form 483, a special form that points out deviations during inspections from the standard US manufacturing practice. Caraco received a warning letter last November for not addressing the problems. In March, Caraco voluntarily recalled the entire batch of Digoxin tablets used to treat heart failure and abnormal heart rhythms due to size variability.