HOME > BUSINESS > Welspun says ‘Egyptian Cotton’ related US lawsuits not yet material

Welspun says ‘Egyptian Cotton’ related US lawsuits not yet material

welspunWelspun said it believed that two complaints against the company for allegedly using non-Egyptian cotton may or may not be allowed to proceed as class action lawsuits, and are therefore not yet ‘material’.

The company was responding to a question by the stock exchanges of India on media reports that alleged that millions of dollars were being sought from the Indian textile manufacturer for mislabeling its products via a class action lawsuit.

Unlike a regular lawsuit, a company hit by a class action lawsuit has to reimburse and pay damages to everyone involved or wronged in the case, which increases the total quantum of fines and penalties.

“The Central allegation in both complaints is that certain Welspun sheeting products were not “100% Egyptian Cotton.” Neither complaint challenges the Safety or fitness of these products. Both complaints allege that the amount in controversy exceeds $5 million,” Wespun said.

“However, neither complaint Seeks a specified amount of damages or provides a methodology for determining damages. Nor has either action been certified for class treatment by the relevant courts, which is required under US law before an action may proceed on a class basis, and no motion to obtain Such certification has been made yet.

“Accordingly, we believe that these actions are only in the preliminary stages, and that it cannot be determined at present whether they will even be permitted to proceed as class actions. Consequently, we believe that these actions cannot be determined to be material at this point in time.”

Welspun engaged Kirkland & Ellis LLP, a leading US law firm, to defend these matters in the US. It has also appointed AZB & Partners, a leading Indian law firm, as its legal advisers in India.

The first complaint was filed in the United States District Court for the Southern District of New York on August 29, 2016, whereas the Second complaint was filed in the United States District Court for the Eastern District of Missouri, Eastern Division on August 31, 2016.

Follow ULTRA.news
Bharti Airtel denies violating Aadhaar norms Bharti Airtel today said it has not violated any norms set down by the UID Authority of India for the use of Aadhaar verification. Responding to a notice from the stock exchanges, the company confirmed having received notices from the UID Authority on alleged violations of no...
Reliance Naval says not worried about IFC’s insolvency petition Reliance Naval and Engineering, the defence production arm of the Anil Ambani group, said it was not worried about the petition filed by bankruptcy petition filed by IFC. It said the international organization does not have its loan secured against the assets of the company. ...
Dr Reddy’s gets served with class action lawsuit Pharma major Dr Reddy's Laboratories said it has been served with a class action lawsuit, originally announced in August, related to public disclosures made about regulatory action against the company. "Further to our intimation dated August 28, 2017 with regard to US Securit...
RCom sends legal notice to rivals for spreading rumors Anil Ambani Group's Reliance Communication said it has sent 'cease and desist' notices to its rivals trying to win over its enterprise customers by creating fear about the company shutting down. The development comes in the wake of announcements by the company that it was gra...
HCL Infosystems gets tax notice for Rs 312 cr plus penalties HCL Infosystems, the India-focused IT arm of HCL Group, said it received a tax demand of Rs 312.34 cr plus interest and an amount equal to the interest amount as penalty. The company, which is already struggling with losses, did not specify the amount of interest involved or ...
LIC withdraws insolvency case against DB Realty Life Insurance Corporation of India, the single biggest shareholder in many listed companies in India, has withdrawn its insolvency case against DB Realty Ltd, the real estate developer said. The two companies have executed a debt settlement agreement on Oct 16, DB Realty sai...
Dr Reddy’s hit by class action suit on “misleading statements” on FDA action Pharma giant Dr Reddy's Labs today said that a class action lawsuit has been filed against it on behalf of shareholders, alleging that the company misled investors causing them to lose money on their investments. "The lawsuit alleges that the company made materially false and...
Anil Ambani group company wins Rs 2,950 cr from DMRC Delhi Airport Metro Express Private Ltd, an associate company of Reliance Infrastructure, said it was awarded compensation of Rs 2,950 crore by a three member Arbitration Tribunal in a dispute with Delhi Metro Rail Corporation or DMRC. The tribunal was constituted from a pan...
Kapil Mishra to file FIR against Arvind Kejriwal Estranged Aam Aadmi Party leader Kapil Mishra said he will file a police complaint against Arvind Kejriwal today. The rebel AAP leader has accused the party supremo of taking bribes and acting like a dictator within the party. "It is with a heavy heart that I am doing this,...
Supreme Court refuses to change decision in Saumya murder case Govindaswamy The Supreme Court has dismissed a curative petition filed by the Kerala Government against its decision finding the main accused not guilty in the prominent Saumya rape and murder case of Kerala. The case, analogous to the Nirbhaya episode of Delhi, had shocke...
Nokia files more patent infringement suits against Apple Nokia has filed further complaints alleging that Apple products infringe a number of Nokia patents, expanding its litigation originally announced on December 21. Across actions in 11 countries, there are now 40 patents in suit, which cover technologies such as display, us...
EXCLUSIVE: Reliance Jio resolves interconnect dispute with Bharti Airtel, Idea & Vodafone The interconnection dispute between Reliance Jio and incumbent operators like Idea Cellular, Vodafone and Bharti Airtel has been "largely resolved," an official with one of the incumbent operators said. "We have provided enough points to avoid any congestion-related problems i...
Reliance Jio interconnect dispute with Airtel, Idea to end this month The dispute over providing interconnection facility is set to end in the next two weeks, with Bharti Airtel, Idea Cellular and Vodafone giving in to the demands of new operator Reliance Jio and the regulator. The decision to comply comes in the wake of a recommendation for a f...
Interconnect fight with Reliance Jio seems over with Airtel’s latest move Reliance Jio welcomed Bharti Airtel's move to set up 7,007 additional points of interconnection to ease traffic between the two players, even as Airtel promised that it would uphold the law. The moves indicate the end of a bitter battle between the newcomer and India's largest op...
Reliance Jio refutes Bharti Airtel’s statement about its ‘unpreparedness’ Reliance Jio Infocomm refuted Bharti Airtel's claim that the current call drop situation was the result of underpreparedness by the new telecom operator, and alleged that it is the result of anti-competitive strategies by the incumbent operator. "RJIL denies that there has bee...
FULL TIMELINE – Reliance Jio vs Bharti Airtel interconnect dispute The following is an updated list of statements on the ongoing tussle between Reliance Jio and Bharti Airtel on the interconnection issue. The two issues statements regularly, and the oldest are given at the bottom, with the latest statements on top. The list is updated as ...
Reliance Jio says Vodafone’s increase in PoI inadequate Reliance Jio Infocomm said the number of new interconnection points being put in place by Vodafone at its network junctions is "substantially less than the requirement". Jio was responding to the announcement yesterday that India's No.3 telecom company will increase interconne...
Airtel sees Reliance Jio’s problems resolved after Jan 1 Hours after attending a meeting called by TRAI on providing interconnection to Reliance Jio, Bharti Airtel said the new operator's interconnection related problems should be resolved after January 1, 2017. Bharti Airtel said it expects Reliance Jio to be a 'commercial telecom ...
TRAI meets with Airtel, Vodafone, Idea on Reliance Jio interconnection tangle Cracking down on incumbent operators' efforts to block Reliance Jio subscribers from calling their customers, the Telecom Regulatory Authority of India has asked big GSM companies such as Bharti Airtel, Idea Cellular and Vodafone to provide connectivity to the new operator, accor...
Is Reliance Jio getting unfairly blocked by Bharti Airtel, Vodafone and Idea? Mukesh Ambani, India's richest man and the chairman of Reliance Jio has given a rare interview in India's largest newspaper accusing his telecom rivals of trying to use their incumbent power to violate the law. He said even Reliance Jio employees are having some trouble portin...