Dabur India, a renowned consumer goods company has disclosed that two of its subsidiaries are currently entangled in legal challenges in Canada and the United States. Customers have claimed that using particular hair relaxer products from these subsidiaries has caused serious health issues, such as ovarian and uterine cancer. 

In response to these accusations, the shares of the company dropped as much as 2.5 per cent during the morning trading session. According to the official regulatory submission, three subsidiaries of Dabur India, namely Namaste Laboratories LLC, Dermoviva Skin Essentials Inc., and Dabur International Ltd., are at present embroiled in a legal battle.

Dabur India clarified that the current legal proceedings are in their preliminary phases, encompassing pleadings and early discovery procedures. The company further underscored that the allegations against its subsidiaries are grounded in what it termed an "unverified and insufficient" study.

Over 5,400 lawsuits brought against multiple companies, which include the three subsidiaries of Dabur India, have been aggregated into a multi-district litigation proceeding before a U.S. District Court located in Illinois.

The subsidiaries have rejected any responsibility and have engaged legal representation to advocate on their behalf, as indicated by the company. The company further added that it's currently impossible to assess any potential financial impact resulting from a settlement or the outcome of the legal battle.

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