Dabur Limited shares opened in the red and were trading 2% below on 19 October after the company informed the exchanges about the pending litigation against three US subsidiaries.

The company informed the exchanges that multiple lawsuits have been filed against the company’s US subsidiaries in federal courts across the US and Canada over the claims that their hair-relaxer products are causing ovarian cancer, uterine cancer, and other health issues.

The subsidiaries of the company, Namaste, Dermoviva, and DINTL, have denied claims and have hired legal representation to defend themselves against these lawsuits.

The Food and Drug Administration has proposed the banning of certain hair straightening products that contain formaldehyde, which is linked to hormone-related cancer and can cause long-term health effects.

The shares of the company are down to their lowest levels in five months.

In its regulatory filing, the company said, “There are various motions pending as well. Since we are in the initial stage of litigation, any final quantum of claim amount is neither probable nor estimable.”

At 1:36 pm, the shares of Dabur India were trading at Rs 522.60 or 2.13% below its previous close on NSE.