Cipla Medpro’s Former CEO Sues Company in Labor Court Case

Cipla Medpro South Africa Ltd. (CMP), the country’s third-largest drugmaker, said it is opposing a lawsuit from former Chief Executive Officer Jerome Smith which alleges his employment contract was ended unlawfully.

Smith claims about 18 million rand ($2.1 million) for the repudiation of his fixed-term contract and more than 11 million rand for unpaid bonuses, the company said in a regulatory filing after the close of the Johannesburg Stock Exchange.

Cipla “will oppose the proceedings” in the Labour Court, the company said.

Smith, who was CEO of the Johannesburg-based company for almost five years, resigned on Oct. 8 before the start of a disciplinary meeting into more than 20 charges, including gross misconduct. The Takeover Regulation Panel probed the company after shareholders, including Smith, lodged a complaint. The regulator dropped its investigation, Cipla said today.

The company’s stock has risen 26 percent since Smith’s resignation and closed at 9 rand in Johannesburg. The four- company FTSE/JSE Africa Pharmaceuticals and Biotechnology Index advanced 17 percent over the same period.

To contact the reporter on this story: Jaco Visser in Johannesburg at

To contact the editor responsible for this story: John Viljoen at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.