“The lawsuit, which was filed by a single small security holder who seeks to represent a class of the Bank’s security holders, is based on allegations that the security holder claims caused a temporary decline in the Bank’s ADR stock price in July 2020. The Bank denies the allegations and intends to defend itself vigorously in the lawsuit,” the bank said in a filing with exchanges.
The bank said it expects its response to the lawsuit to be due in early 2021. “Since the lawsuit is at a premature stage, there is no matter at this point of time which requires disclosure,” the bank said in its filing.
US-based law entities, Rosen Law Firm and Schall Law, have filed class action suits against HDFC Bank for allegedly giving misleading public statements and for failing to inform the investors about the bank’s improper internal controls on lending practices in its vehicle-financing operations.
The lawsuits, filed in United States District Court for the Eastern District of New York, named outgoing Managing Director Aditya Puri, CEO-designate Sashidhar Jagdishan, and Company Secretary Santosh Haldankar as ‘individual defendants’ and collectively, with the bank, as ‘defendants’.