HAWTHORNE, N.Y.--(BUSINESS WIRE)--Taro Pharmaceutical Industries Ltd. (“Taro,” the “Company,” Pink Sheets: TAROF) filed a lawsuit today against Sun Pharmaceutical Industries Ltd. and certain of its affiliates (collectively, “Sun”) in the United States District Court for the Southern District of New York alleging, among other things, that Sun failed to disclose to Taro shareholders material information such as (i) the recent action by the U.S. Food and Drug Administration (“FDA”) against Caraco Laboratories, Inc., Sun’s majority owned U.S. subsidiary (“Caraco”) in which the FDA seized $20 million in products, effectively closing down manufacturing operations of Caraco; (ii) the fact that the FDA action apparently grew out of a long pattern of failure to comply with regulatory requirements governing the manufacture of drugs at Caraco under Sun’s controlling hand; (iii) the impact these events and other serious lapses of operational diligence and corporate governance would have on Taro, its operations, business and its shareholders if Sun were to gain control of Taro; (iv) the harm that Sun has inflicted on Caraco’s minority public shareholders in order to advantage Sun and Sun’s shareholders; (v) suits filed by shareholders of Caraco alleging violations of securities law and failure to disclose material facts; and (vi) recent disclosures by Caraco of the resignation of a Caraco outside independent director over serious “corporate governance” issues at Caraco.
