HAWTHORNE, N.Y. The drama over Indian drug maker Sun Pharmaceutical Industries’ efforts to acquire Israel’s Taro Pharmaceutical Industries continued Tuesday, as Taro filed suit against Sun in the U.S. District Court for the Southern District of New York, alleging that Sun failed to disclose information to Taro shareholders.
Taro alleged that Sun did not disclose the Food and Drug Administration’s seizure earlier this year of $20 million in products from Caraco Labs, its U.S. subsidiary. That action, Taro said, resulted from a “long pattern of failure” to comply with FDA manufacturing regulations, which would have adverse effects on Taro.
Taro also accused Sun of misappropriating confidential information about Taro as part of its efforts to acquire the company – which it has sought to do since June 2008 – and illegally using it to undermine Taro’s relationships with customers and revenues.