India’s Biggest Drug Maker Settles Whistle-Blower Complaints
(Bloomberg) -- India’s biggest drug maker Sun Pharmaceutical Industries Ltd. settled years long whistle-blower cases, seeking to draw a line over allegations that set off a wide-ranging corporate governance crisis.
The Securities and Exchange Board of India said in a series of statements on Thursday that Sun’s senior management, led by billionaire founder Dilip Shanghvi, will pay a total 23.6 million rupees ($323,886) “without admitting or denying the findings of fact and conclusions of law.” Shanghvi himself will pay 6.2 million rupees.
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The settlement brings to a close a case brought to the regulator by two complaints against the Mumbai-based firm. They alleged fund diversion by Sun and one of its units through Aditya Medisales Ltd. and claimed Shanghvi was getting extra financial benefits from the company’s operations through related-party transactions.
The allegations triggered multiple stock slides, forensic audits and forced Sun to tweak some of its business contracts to contain the fallout. Shanghvi has denied any wrongdoing and a spokesperson for Sun couldn’t comment immediately. The company’s shares climbed 2.6% at the close in Mumbai before the statements were released.
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