HDFC Bank Limited (HDB) Securities Class Action

HDFC Bank Limited (HDB) Securities Class Action Overview:

The lawsuit filed against HDFC Bank Limited (“HDFC” or the “Company”), and certain top executive officers including Chief Executive Officer Sashidhar Jagdishan and Chief Financial Officer Srinivasan Vaidyanathan, alleges violations of the federal securities laws.

Specifically, the action centers on HDFC’s failure to disclose key material adverse facts regarding its business operations, financial accounting, and regulatory compliance:

• Camouflaged Marketing Payments & Covert Deposit Inducements: HDFC secretly funneled approximately Rs 45 crore (approx. $4.7 million USD) to the Maharashtra State Road Development Corporation (“MSRDC”) to induce the state firm to place large deposits with the bank.
• Disguised Above-Market Interest Rates: To circumvent regulations and provide MSRDC with a 6.01% interest rate (a 2.51% markup over standard retail savings accounts), senior management devised a scheme to route the differential payments through the marketing department disguised as sponsorship contributions for a road safety awareness campaign.
• Governance and Regulatory Breaches: These covert practices violated the Reserve Bank of India’s (RBI) Master Directions on interest rates and breached the bank's own internal anti-bribery and anti-corruption policies prohibiting improper inducements.
• Overstated Financials: As a result of these hidden activities, HDFC’s interest income and operating expenses were overstated during the class period, rendering the Company’s positive public statements and financial controls false and misleading.

Truth Begins to Unravel & Stock Price Declines:

The fraudulent scheme allegedly began to surface in stages, causing sharp drops in the market value of HDFC American Depositary Shares (ADS):

1. March 18, 2026: HDFC announced the abrupt resignation of part-time Chairman and Independent Director Atanu Chakraborty, whose resignation letter stated that happenings and practices within the bank over the prior two years were "not in congruence with my personal Values and Ethics." On this news, HDFC ADS prices fell 7.28% on heavy volume.

2. May 27, 2026: The Indian Express published an investigative report exposing that HDFC "camouflaged crores as marketing spend" to pay higher interest to MSRDC, revealing an internal vigilance probe implicating CEO Sashidhar Jagdishan and other top leadership. Following this disclosure, HDFC ADS fell 4.1% to close at $23.78 per share.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the HDB investigation about?

We are focused on whether HDFC’s senior leadership concealed a covert scheme to funnel millions in disguised payments to induce state-firm deposits while publicly painting a picture of strong governance and compliance, as the complaint alleges.

WHAT SHOULD I DO?

I worked at HDB. What should I do?

If you were an employee of HDB, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in HDB, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any HDB investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.