US based Rosen Law – a global investor rights law firm has announced that it would investigate potential securities claims on behalf of shareholders of HDFC Bank Ltd following allegations that the private lender may have issued materially misleading business information to investors.“Rosen law firm is preparing a securities lawsuit on behalf of HDFC Bank shareholders,” the firm said in a statement, inviting shareholders of the lender to join the securities action.
HDFC Bank and Rosen Law could not be immediately contacted for a response.
The firm is relying on several media reports in the past which have stated that the bank had conducted a probe into improper practices at its vehicle lending unit. An ET report on July 13, had stated that the bank had found conflict of interests in its vehicle financing operations, after which HDFC Bank’s American Depositary Receipt price fell $1.37 per share or 2.83%.
Another recent by news agency Bloomberg had stated that Experian Plc’s India unit had informed the banking regulator Reserve Bank of India that HDFC Bank has been late in providing details of its loans, including loan repayments status of its borrowers.
Last year, Rosen Law had prepared a similar class action suit against IT giant Infosys after a whistleblower had alleged malpractices by a few key management personnel.
Credit: Stocks-Markets-Economic Times