Welspun India has said that the two cases filed against it in the US over bed sheets supplied not being 100 per cent Egyptian cotton are at preliminary stages and it cannot be determined whether they will even be permitted to proceed as class actions at present.

Admitting that two putative class action complaints have been filed against it, Welspun India said in a BSE filing that they have not been certified for class treatment by relevant courts. This is required under the US law before any action may proceed on a class basis. No motion to obtain such certification has been made yet, it added. ‘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,’ the company observed.

The central allegation in both complaints is that certain Welspun sheeting products were not 100 per cent Egyptian Cotton, the filing said. ‘Neither complaint challenges safety nor fitness of these products. Both complaints allege that the amount in controversy exceeds $5 million. However, none of the complainents seek a specified amount of damages or provides a methodology for determining damages, the company said.