Welspun shares have dropped as much as 3.2% on Sensex on Thursday after two class-action lawsuits worth over $5 million each were filed against it in the US. Currently, the shares of the company are trading down 2.69% or Rs 1.55, at Rs 56.10 per piece at 1131 hours.

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Bloomberg report.

The lawsuit, which has been filed by consumer-rights action law firm, Hagens Berman Sobol Shapiro LLP, on the grounds that Welspun committed a “widespread fraud” in which “consumers who have purchased Welspun bed linens.

The lawsuit was filed on August 29 after Target announced that it was halting the distribution of Welspun products after discovering its products were made with cheaper fibres and were mislabelled as Egyptian cotton for over two years.