New Delhi: Dr. Reddy’s Laboratories on Tuesday said the US Securities and Exchange Commission (SEC) has concluded its investigation into allegations of improper payments in certain overseas markets and does not intend to recommend enforcement action against the company at this time.
The development marks a significant turn in a matter that dates back to November 2020, when the Hyderabad-based drugmaker disclosed that it had begun an internal investigation following an anonymous complaint. The complaint alleged improper payments to healthcare professionals in Ukraine and potentially other countries, raising concerns under US anti-corruption laws, including the Foreign Corrupt Practices Act (FCPA).
The company had voluntarily informed the US Department of Justice (DOJ), the SEC and the Securities and Exchange Board of India (SEBI) about the matter at the time. It also engaged a US law firm, under the supervision of a board committee, to conduct a detailed investigation.
In a regulatory filing on Tuesday, Dr Reddy’s said it received a letter from the SEC dated February 23, 2026, stating that, based on the information available, the agency has concluded its investigation and does not intend to recommend enforcement action.
The SEC, however, clarified in its communication that the notice should not be interpreted as an exoneration, and that it does not preclude the possibility of future action should new information come to light.
Dr Reddy’s said it had cooperated fully with US authorities throughout the process, providing documents and participating in submissions and presentations relating to the initial complaint and additional concerns in certain markets.
The closure of the SEC probe removes a regulatory overhang that had persisted for over five years. The company did not comment on whether the DOJ has also formally closed its review.