Lupin Limited and its subsidiaries are involved in intellectual property claims and legal proceedings, which are normal to our business. Often, these litigations are resolved through settlement agreements with the plaintiffs.
There were multiple antitrust class actions filed in the Northern District of California, U.S. against several stakeholders, including Lupin Ltd. and its subsidiary Lupin Pharmaceuticals, Inc., U.S., in connection with Glumetza®, a drug for treatment of diabetes. Two of the plaintiffs separately representing majority of the claims against Lupin are collectively addressed as the Direct Purchaser Group and the Retailer Opt-Out Group. The lawsuits alleged that the 2012 settlement of patent litigation regarding Glumetza® delayed the availability of generic alternatives, causing consumers to pay higher prices for the drug. The Company has disputed these claims and defended these matters vigorously. The trial for this case is scheduled to begin on October 4, 2021, in the U.S. courts.
With a view to resolve this dispute, considering that other defendants have recently settled the case and in light of the increased uncertainty, the Company has agreed to settle with the plaintiffs for an amount of US$ 150 mn (US Dollar One Hundred and Fifty million) to the Direct Purchaser Group (subject to Court's approval) and US$ 98 mn (US Dollar Ninety Eight million) to the Retailer Opt-Out Group. The Board of Directors approved the same at its meeting held today.
This settlement will not have a significant impact on the financial position of the Company.
Shares of Lupin Ltd was last trading in BSE at Rs. 989.1 as compared to the previous close of Rs. 981.9. The total number of shares traded during the day was 25267 in over 1366 trades.
The stock hit an intraday high of Rs. 995 and intraday low of 983.4. The net turnover during the day was Rs. 24960469.