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US-based law firms, Rosen Law Firm and Schall Law Firm, file class-action suits against HDFC Bank

US-based law firms, Rosen Law Firm and Schall Law Firm, file class-action suits against HDFC Bank
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HDFC Bank

Highlights

Two US-based law firms, namely Rosen Law Firm and Schall Law Firm, have filed class-action suits against the private lender HDFC Bank.

Two US-based law firms, namely Rosen Law Firm and Schall Law Firm, have filed class-action suits against the private lender HDFC Bank. In their suit, they have alleged misleading and false public statements by the senior management, which caused damages to investors.

The lawsuit has been filed in the US District Court Eastern District of New York against the Bank, outgoing Managing Director (MD) Aditya Puri, CEO-designate Sashidhar Jagdishan, and company secretary Santosh Haldankar as individual defendants and collectively with the bank as defendants'.

The firms have alleged that the misleading statements made by senior personnel and failure in disclosing that HDFC Bank had inadequate disclosure controls, which led to improper lending practices in its vehicles financing operations. It also alleges that the earnings through vehicle financing operations of the bank were unsustainable.

The suit filed by Rosen Law Firm

Rosen Law filed the suit on September 14, 2020, Monday, on behalf of investors who have purchased HDFC Bank equity between July 31, 2019, and July 10, 2020, inclusive (the "Class Period"). The lawsuit seeks to recover damages for HDFC investors under the federal securities laws. Rosen had announced it would file such a lawsuit on September 4, 2020.

The firm in its suit said, "According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose to investors that: (1) HDFC Bank had inadequate disclosure controls and procedures and internal control over financial reporting; (2) as a result, the Bank maintained improper lending practices in its vehicle-financing operations; (3) accordingly, earnings generated from the Bank's vehicle-financing operations were unsustainable; (4) all the foregoing, once revealed, was foreseeably likely to have a material negative impact on the Bank's financial condition and reputation; and (5) as a result, the Bank's public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages."

Rosen Law Firm represents investors from across the world, concentrating its practice in securities class actions and shareholder derivative litigation.

The suit filed by Schall Law Firm

Law Firm announced suit filing on September 8, and the period for the suit is same, between July 31, 2019, and July 10, 2020, inclusive (the "Class Period"), as filed by Rosen Law.

The firm in its suit said, "According to the Complaint, the Company made false and misleading statements to the market. HDFC Bank failed to maintain appropriate disclosure controls and internal controls on financial reporting. The Company engaged in improper lending practices in its vehicle financing business. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about HDFC Bank, investors suffered damages."

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

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