Lupin disclosed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 that its wholly owned subsidiary Lupin Pharmaceuticals Inc. has entered into a settlement agreement with Humana Inc. in relation to ongoing litigation in the United States.
The company stated that, in the normal course of business, it and its subsidiaries are involved in legal proceedings, which are often resolved through settlement agreements with plaintiffs.
Lupin Pharmaceuticals Inc. has been involved in multiple civil lawsuits alleging anticompetitive behaviour related to certain products and violation of federal and state antitrust laws. These lawsuits were combined into a group of cases referred to as In Re Generic Pharmaceuticals Antitrust Litigation, located in Philadelphia, Pennsylvania.
The company stated that Lupin Pharmaceuticals Inc. denies the allegations. However, considering that other defendants have settled and to avoid the costs and uncertainties of continued litigation, the subsidiary has entered into an agreement with Humana Inc.
Under the terms of the agreement, Lupin Pharmaceuticals Inc. will pay USD 30 million in consideration for a full and final release of all claims against the subsidiary and its current and former parents, affiliates, directors, employees and officers by Humana Inc.
The company stated that the settlement amount has already been provided in its prior consolidated financial results.
The settlement specifies that Lupin Pharmaceuticals Inc. denies all allegations made against it and that the agreement does not imply any admission of liability or unlawful conduct.