San Francisco, October 12 (Reuters/ PR Newswire ) – Hagens Berman, a national law firm known for securities class actions, has notified HDFC Bank Limited ( NYSE : HDB ) investors that the class action regarding securities fraud against the company has entered the pending stage.
During the class-action period:From July 17, 2023, to May 26, 2026
Chief plaintiff deadline:October 13, 2026
Access:www.hbsslaw.com / hdb
Contact a law firm:[ email protected ] / 844-916-0895
A lawsuit filed against HDFC Bank Limited (hereinafter referred to as “HDFC” or “the Company”) and certain executives, including the Chief Executive Officer Sashidhar Jagdishan and the Chief Financial Officer Srinivasan Vaidyanathan, alleges that the defendants violated federal securities laws.
Specifically, the lawsuit revolves around the failure of HDFC to disclose key and material adverse facts related to its business operations, financial accounting, and regulatory compliance:
- Masking marketing payments and concealing deposits to induce:HDFC is alleged to have secretly transferred approximately 4.5 billion rupees (about 4.7 million US dollars) to the Maharashtra Road Development Corporation (Maharashtra State Road Development Corporation, abbreviated as MSRDC), in order to induce this state-owned company to deposit a large amount of funds with that bank.
- Pretending to have interest rates higher than those in the market:To circumvent regulations and offer a 6.01% interest rate to MSRDC (2.51 percentage points higher than the standard retail savings account rate), senior management is said to have devised a scheme to transfer the difference through the marketing department, disguising it as sponsorship expenditure for a road safety campaign.
- Governance and regulatory violations:These covert practices are alleged to violate the Reserve Bank of India's ( RBI ) 'Master Directions' regarding interest rates, and also breach the bank's internal anti-bribery and anti-corruption policies that prohibit improper inducement.
- Financial data is exaggerated:Due to these concealed activities, HDFC's interest income and operating expenses during the class action period are alleged to have been exaggerated, rendering the company's previous positive public statements and financial controls misleading.
The truth is gradually coming to light, and the stock price is falling:
It is alleged that this fraudulent scheme began to be exposed in stages, resulting in a significant decline in the market value of HDFC American Depository Receipts ( ADS ):
- March 18, 2026:HDFC announces that the part-time chairman and independent director, Atanu Chakraborty, has suddenly resigned. In his resignation letter, he stated that the events and practices that occurred within the bank over the past two years "are not in line with my personal values and moral principles." Following the announcement of this news, HDFC ADS fell by 7.28% during heavy trading.
- May 27, 2026:The Indian Express published an investigative report revealing that HDFC “camouflaged billions of rupees as marketing expenses” in order to pay higher interests to MSRDC, and also disclosed that an internal audit investigation implicated the CEO Sashidhar Jagdishan and other senior executives. Following the release of this news, HDFC ADS fell by 4.1%, closing at $23.78 per share.
Hagens Berman Investigation
"What we are concerned about is, as alleged in the complaint, whether the senior management of HDFC has concealed a secret plan: to transfer millions of dollars through disguised payments in order to attract deposits from state-owned companies, while presenting an image of strong governance and compliance to the outside world," said Reed Kathrein, the partner in charge of the investigation into the pending claims at that firm.
Actions that affected HDB investors should take
If you purchased or acquired HDFC securities between July 17, 2023, and May 26, 2026, and suffered significant financial losses as a result, you may request the court to appoint you as the lead plaintiff before October 13, 2026.
For information on legal options, you may submit information to Hagens Berman, visit www.hbsslaw.com / hdb, call Reed Kathrein at 844-916-0895, or send an email to [ email protected ].
Whistleblower:Persons in possession of non-public information related to HDFC may consider assisting with the investigation or taking advantage of the U.S. Securities and Exchange Commission (SEC) Whistleblower Program. Under this program, whistleblowers who provide original information are eligible for a reward of up to 30% of the amount successfully recovered. For more information, please call Reed Kathrein at 844-916-0895, or send an email to [ email protected ].
About Hagens Berman
Hagens Berman is a global law firm specializing in complex litigation involving plaintiff rights, with a focus on corporate accountability. The firm boasts strong practical experience and has achieved tangible results in representing investors, whistleblowers, workers, consumers, and others who have been victims of corporate negligence and other improper conduct. The team at Hagens Berman has secured over $2.9 billion in compensation in this legal field. For more information about the firm and its achievements, please visit hbsslaw.com. Follow the firm's updates and news: @ClassActionLaw.
Lawyer advertisement.Past results do not guarantee that similar outcomes will be achieved in any future cases.
Contact:Hagens Berman, Reed Kathrein, 715 Hearst Avenue, Suite 300, Berkeley, CA 94710, 844-916-0895, [ email protected ]
