Two US-based law firms have filed class-action suits against HDFC Bank for alleged false or misleading statements.
Rosen Law Firm and Schall Law Firm have alleged that the private lender engaged in misleading statements and failed to inform investors about the bank's "improper internal controls on vehicle loans".
The lawsuits are filed in the US District Court Eastern District of New York and names HDFC Bank’s outgoing managing director Aditya Puri and CEO-designate Sashidhar Jagdishan along with other officials.
While Rosen Law filed the suit on September 14, Schall Law announced the filing on September 8.
"We were unaware of any such development (class-action lawsuit) till we heard about it from the media a little earlier today. We are getting details of it. We’ll examine it and respond to it as appropriate. Prima facie it does look frivolous as we believe we have been transparent in our disclosures," an HDFC Bank's communication executive said in August.
On 17 August, Moneycontrol had reported that
Rosen Law had announced an investigation of potential securities claims on behalf of shareholders of HDFC Bank
. The firm was also preparing for a class-action suit on behalf of bank’s shareholders, the report had said, adding the investigation was the outcome of accusations that HDFC Bank may have issued materially misleading business information to the investing public.
Rosen Law, on its website, asked investors to provide their details if they had purchased HDFC Bank Limited securities and wanted information about the investigation.
“A representative of The Rosen Law Firm will contact you at no cost to you and provide you detailed information concerning the proposed class-action to recover your losses in HDFC Bank Limited securities,” the firm said on its website.