HDFC Bank Limited Class Action Lawsuit
- Company Name
- HDFC Bank Limited
- Stock Symbol
- Class Period
- July 31, 2019 to July 10, 2020
- Eastern District of New York
The HDFC Bank Limited class action lawsuit charges HDFC Bank and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of HDFC Bank securities between July 31, 2019 and July 10, 2020, inclusive (the “Class Period”). The HDFC Bank class action lawsuit was commenced on September 3, 2020 in the Eastern District of New York and is captioned Arora v. HDFC Bank Limited, No. 20-cv-04140.
HDFC Bank provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai.
The HDFC Bank class action lawsuit alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) HDFC Bank had inadequate disclosure controls and procedures and internal control over financial reporting; (ii) as a result, HDFC Bank maintained improper lending practices in its vehicle-financing operations; (iii) accordingly, earnings generated from HDFC Bank’s vehicle-financing operations were unsustainable; (iv) all the foregoing, once revealed, was foreseeably likely to have a material negative impact on HDFC Bank’s financial condition and reputation; and (v) as a result, HDFC Bank’s public statements were materially false and misleading at all relevant times.
On July 13, 2020, The Economic Times published an article, titled “HDFC Bank probes lending practices at vehicle unit,” reporting that HDFC Bank had “conducted a probe into allegations of improper lending practices and conflicts of interests in its vehicle-financing operations involving the unit’s former head.” On this news, HDFC Bank’s American Depositary Share price fell nearly 3%, damaging investors.
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