Sun Pharma slapped with class action suit in Caraco case

Pharmaceutical major Sun Pharma is facing a class action suit in the United States over plant closures that took place in 2009.

The case pertains to Sun Pharma's US subsidiary Caraco. The US Circuit Court of Appeals ruled  that Caraco did not comply with norms while closing two of its units in Detroit and Farmington Hills.

The case is based on the fact that Caraco did not issue a Federal Worker Adjustment and Retraining Notification Act (WARN) notice to its employees until 11 days after the plants were closed.

While the company claimed it had "extraordinary circumstances" as its reason for filing the notice late, former employees sued the company arguing that the plant was facing issues for years and had been informed by the FDA that a seizure could take place if it didn't mend ways with respect to its manufacturing.In a statement given post market hours, the company said the court's judgement does not have any material impact on its performance or operations.