Dabur India, in a filing on Wednesday, said that its subsidiaries were among companies that were sued in the US and Canada by customers who alleged that the use of their hair relaxer products caused ovarian cancer, uterine cancer and other health issues. The consumer goods firm said that there are about 5,400 cases against several companies including its subsidiaries Namaste Laboratories, Dermoviva Skin Essentials and Dabur International. 

“Currently, the cases are in the pleadings and early discovery phases of litigation. 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,” it said. 

The company said that certain consumers in the hair relaxer product industry have alleged that some industry players sold and manufactured hair relaxer products that contain certain chemicals that resulted in ovarian cancer, uterine cancer and other health issues. Dabur said that its subsidiaries Namaste, Dermoviva and DINTL have denied liability and have retained counsel to defend them in these lawsuits. Dabur said that these allegations are based on “unsubstantiated and incomplete study”. 

The company said that at this stage of the litigation, any financial implication due to settlement or verdict outcome cannot be determined. “However, the defense costs for the litigation is expected to breach the materiality threshold, in the near future,” it said. 

Separately, on Tuesday the FMCG major said that it received a Goods and Service Tax (GST) demand of Rs 320.60 crore, along with interest and penalty. It said that it will challenge the notice before relevant authorities. 

“The Company has received intimation of tax ascertained as being payable under Section 74(5) of CGST Act, 2017, wherein GST short paid / not paid amounting to Rs 320.60 crore has been advised to be paid by the Company along with the amount of applicable interest and penalty… failing which show cause notice will be issued,” Dabur informed.

It said that there would be no impact on the financial, operation or other activities of the company. 

Dabur is the maker of Chyawanprash supplement, Honitus cough syrup, Lal Dant Manjan toothpaste, Ashokarishta tonic, Real juices, Odomos, Vatika hair products, Pudin Hara and Hajmola digestives and more. 

Also read: Dabur gets GST demand notice of Rs 321 crore, says it would challenge order