News

SEC closes probe into alleged improper payments by Dr. Reddy’s, no enforcement action recommendedDr. Reddy's Laboratories Ltd announced the SEC has concluded its probe into alleged improper payments in Ukraine, with no enforcement action recommended, but future action remains possible. Shares of Dr. Reddy's Laboratories Ltd ended marginally lower on Tuesday, February 24, by 0.57% at ₹1,300.00 on the NSE.By Megha Rani  February 24, 2026, 6:10:55 PM IST (Published)2 Min Read

Dr. Reddy's Laboratories Ltd has received a communication from the US Securities and Exchange Commission (SEC) stating that the regulator has concluded its investigation into allegations of improper payments and does not intend to recommend any enforcement action at this time.

The investigation stemmed from an anonymous complaint alleging improper payments to healthcare professionals in Ukraine and potentially other countries, which could have constituted violations of US anti-corruption laws, including the US Foreign Corrupt Practices Act (FCPA), according to the exchange filing.

The company had disclosed the matter to the US Department of Justice (DOJ), the SEC and the Securities and Exchange Board of India (SEBI).

At the direction of a committee of its Board of Directors, Dr. Reddy’s had engaged a US law firm to conduct a detailed internal investigation. The company had earlier cautioned that the probe could result in regulatory or enforcement actions in the United States or other jurisdictions and could potentially lead to civil or criminal sanctions under applicable laws.

Also Read: Dr Reddy’s boosts gynaecology portfolio, acquires HRT brands from Mercury Pharma for $32.2 mn

Following the disclosures, the company said it fully cooperated with the DOJ and SEC, providing requested documents and information, and continued to engage with the regulators through submissions and presentations related to the initial complaint as well as additional complaints concerning certain other markets.

In a letter dated February 23, 2026, the SEC informed the company that, based on the information available, it has concluded the investigation and does not intend to recommend enforcement action at this stage.

However, the SEC noted that the communication was issued pursuant to Securities Act Release No. 5310 and should not be construed as an indication that the company has been exonerated or that no future action may result from the staff’s investigation, stated the press release.

Shares of Dr. Reddy's Laboratories Ltd ended marginally lower on Tuesday, February 24, by 0.57% at ₹1,300.00 on the NSE.

Also Read: Dr Reddy’s close to Canada approval for generic weight loss drug: GV PrasadContinue ReadingTagsDr Reddy's LaboratoriesDr Reddy's sharesUS Department of JusticeUS Securities and Exchange Commission