The litigation, spearheaded by the law firm Hagens Berman, targets HDFC and key executives including CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan. The complaint alleges that between July 17, 2023, and May 26, 2026, the bank funneled approximately 45 crore rupees ($4.7 million) to the Maharashtra State Road Development Corporation to secure large deposits. To bypass Reserve Bank of India interest rate regulations, management allegedly disguised these payments as sponsorship contributions for a road safety campaign.
HDFC Bank Investors Face October 13 Deadline in Securities Fraud Lawsuit
Investors in HDFC Bank Limited have until October 13, 2026, to seek lead plaintiff status in a class-action lawsuit alleging the bank engaged in a multi-year scheme to mask illicit deposit inducements as marketing expenses, leading to significant stock price volatility and potential financial losses for shareholders.
Evidence of these practices surfaced throughout early 2026, triggering sharp declines in HDFC’s American Depositary Shares. Following the March 18 resignation of Chairman Atanu Chakraborty, who cited ethical concerns, the share price dropped 7.28%. Further damage occurred on May 27 after an investigative report exposed an internal probe into the leadership’s conduct, causing the stock to fall an additional 4.1% to $23.78. Investors who incurred substantial losses during the class period are encouraged to contact Hagens Berman partner Reed Kathrein regarding their legal options before the October deadline.
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