The three foreign subsidiaries of Dabur are facing lawsuits because of their hair relaxer products.
The allegations are that their hair relaxer products contain that cause ovarian cancer, uterine cancer and other health issues.
The names of the three foreign subsidiaries are Namaste Laboratories LLC, Dermoviva Skin Essentials Inc and Dabur International Ltd. They are being sued in the courts of United States and Canada because of the serious health issues.
The case is in an early phase of litigation. But it could prove to be a disaster if the verdict comes against the Dabur company.
The parent company has said that its subsidiaries Namaste, Dermoviva and DINTL are facing litigations based on “unsubstantiated and incomplete study”.
Whereas the lawsuit against Namaste Laboratories is referring to data from a major clinical study which found evidence that chemical hair relaxer products could cause uterine cancer. It is called the Sister Study.
The study has examined connection between hair product use and uterine cancer among 33,947 participants aged 35-74 years who had a uterus at enrollment (2003-2009), they have found the evidence of association between use of straightening products and uterine cancer.
The law firm of Federman & Sherwood conducted further investigations into Namaste, focusing on the manufacturing, marketing, sale, and distribution of ORS hair care products across the United States. The purpose of these investigations was to gather evidence regarding the presence of phthalates and other endocrine disrupting chemicals in these products, which are known to cause uterine and cervical cancer, as well as fibroids.
Dabur is cognizant of the fact that a settlement may result in significant financial implications, potentially amounting to millions of dollars. This is due to the distinct legal concept in the United States known as Class Action Lawsuits, which allows for a group of individuals to collectively file a lawsuit, expediting the legal proceedings and reducing costs for the plaintiffs, while imposing substantial penalties on the accused party.
Dabur today closed at 508.45 down 1.82% from the yesterday’s close.