US-based Rosen Law Firm has filed a class action suit against HDFC Bank on behalf of its shareholders, alleging that the lender had misled its investors. The firm has sought damages from the bank.
The lawsuit names HDFC Bank, its outgoing managing director Aditya Puri, CEO-designate Sashidhar Jagdishan and company secretary Santosh Haldankar as defendants. Filed in the United States District Court for the Eastern District of New York, the complaint states that the defendants made materially false and misleading statements regarding the bank’s business, operational and compliance policies.
HDFC Bank’s American depository share (ADS) price had declined $1.37 per share, or 2.83%, to close at $47.02 per share. Today, shares of HDFC Bank fell 0.94% to end at ₹1,083,25 apiece.
Rosen Law Firm represents investors from across the world, concentrating its practice in securities class actions and shareholder derivative litigation. Last month, the firm had announced an investigation of potential securities claims on behalf of shareholders of the bank.
“The defendants are liable both directly and indirectly for the wrongs, because of their positions of control and authority, the defendants were able to, directly or indirectly, control the content of statements of HDFC Bank,” the complaint states. HDFC Bank said it was studying the lawsuit.