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Judge Probes Mental State In Dr. Reddy's Manufacturing Suit

Law360, Trenton (August 8, 2018, 9:37 PM EDT) -- A New Jersey federal judge expressed skepticism Wednesday over Dr. Reddy’s Laboratories Ltd.’s bid to toss a putative consolidated class action on the grounds that investors failed to adequately plead that the business intended to deceive them in making allegedly misleading statements about quality control issues at manufacturing facilities.

At a hearing on the pharmaceutical company’s motion to dismiss the amended suit, U.S. District Judge Peter G. Sheridan said the complaint gave rise to an inference that Dr. Reddy’s acted with that state of mind — known as scienter — in its alleged misrepresentations to investors.

“I generally thought just reading the complaint ... you can see scienter,”...

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Case Information

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New Jersey

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Date Filed

August 25, 2017

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