HDFC Bank faces class-action lawsuit in US, shares decline
Lokmat Times
HDFC Bank is facing a US class-action lawsuit over allegations of inflating interest payments, leading to a decline in shares.Summary
HDFC Bank is facing a federal securities class-action lawsuit in New York, alleging that it disguised illegal interest markups to the Maharashtra State Road Development Corporation as marketing expenses. The lawsuit, filed by an investor on behalf of ADS purchasers, claims the bank violated RBI regulations and misled investors by overstating expenses and net income in SEC filings. An internal probe confirmed the violations, leading to the chairman's resignation and significant drops in share price. Plaintiffs seek damages for violations of the Securities Exchange Act of 1934.
(Source：Lokmat Times)