HDFC Bank Limited Class Action Lawsuit

Case Summary

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.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: July 31, 2019 - July 10, 2020
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