Dr. Reddy’s Laboratories announced that the U.S. Department of Justice (DOJ), Criminal Division, has formally closed its inquiry into allegations of improper payments. This closure follows previous disclosures made in 2020 concerning potential violations of U.S. anti-corruption laws, including the FCPA. The Department stated that, based on the information available, it will not recommend any enforcement action against the Company. This decision aligns with the SEC’s earlier conclusion in February 2026.
Resolution of Compliance Investigation
Dr. Reddy’s Laboratories has provided an update regarding the long-standing investigation initiated following an anonymous complaint concerning alleged improper payments to healthcare professionals in Ukraine and other countries, which could constitute violations of U.S. anti-corruption laws, specifically the Foreign Corrupt Practices Act (FCPA).
This investigation had previously been disclosed to the U.S. Department of Justice (DOJ), the SEC, and the SEBI, with an internal investigation conducted by an external U.S. law firm hired by the Board’s committee.
Official Closure by US Authorities
The Company now confirms receiving official correspondence, dated March 5, 2026, from the U.S. Department of Justice, Criminal Division, Fraud Section (the “Department”).
Crucially, the Department has formally stated that, based on the information it has reviewed, it has closed its inquiry under the Foreign Corrupt Practices Act. Furthermore, the Department has not recommended any enforcement action against Dr. Reddy’s Laboratories.
Previous SEC Confirmation
This development follows a similar indication received earlier. Through an intimation on February 24, 2026, the Company had informed the exchanges that the SEC concluded its investigation and did not intend to recommend enforcement action against the Company at that time.
This information, disclosed on March 6, 2026, provides finality regarding the DOJ’s review of the matter.
Source: BSE
