Dabur India Subsidiaries Face Lawsuits Over Hair-Relaxer Products Allegedly Causing Cancer
New Delhi, India – Three foreign subsidiaries of Dabur India, the popular FMCG and Ayurvedic products maker, are currently embroiled in multiple lawsuits in the United States and Canada. The lawsuits allege that the hair-relaxer products produced these subsidiaries have led to the development of ovarian cancer, uterine cancer, and other health issues.
Late on Wednesday night, Dabur India issued a regulatory filing revealing that three of its subsidiaries, namely Namaste Laboratories LLC, Dermoviva Skin Essentials Inc, and Dabur International Ltd, are facing legal action in federal and state courts in both the US and Canada.
The company stated, “Cases have been filed in both federal and state courts in the United States and in Canada. The federal cases were consolidated as a Multi-District Litigation, also referred to as MDL, before the United States District Court for the Northern District of Illinois.”
Currently, there are approximately 5,400 cases involved in the Multi-District Litigation, which named Namaste, Dermoviva, and Dabur International as defendants, along with other players in the industry. These cases are still in the pleadings and early discovery phases, where the adequacy of the plaintiffs’ complaints is being challenged, and requests for information and documents are being exchanged.
Dabur clarified that its subsidiaries vehemently deny any liability and have sought legal representation to defend themselves. The company believes that the allegations are based on incomplete and unsubstantiated studies.
Dabur India also acknowledged the potential financial implications these lawsuits could have, including compensation and penalties. However, the company emphasized that it is too early to determine any settlement or verdict outcomes at this stage of the litigation.
Furthermore, Dabur India disclosed that the defense costs for these lawsuits are expected to exceed the materiality threshold in the near future.
In the fiscal year 2022-2023, Dabur India’s 27 subsidiary companies contributed to 26.60% of the consolidated revenue from operations. The company’s international business revenue reached Rs 2,867 crore, with a growth rate of 11.1% in constant currency terms. Dabur India currently operates eight manufacturing locations worldwide.
As the legal battle continues, Dabur India remains focused on defending its subsidiaries and addressing the concerns regarding their hair-relaxer products.