US law firm files class action suit against HDFC Bank for misleading claims

US law firm files class action suit against HDFC Bank for misleading claims

Mumbai: A class action against HDFC Bank, a law firm in the US, claimed damages for losses incurred by investors due to “materially inaccurate and misleading” representations made by India’s largest private sector lender. Has filed suit.
The suit given by Rosen Legal specifically included the bank’s managing director and chief executive Aditya Puri, his chosen successor Shashidhar Jagadishan and company secretary Santosh Haldankar, who are defendants in the suit, according to a copy of the complaint uploaded on the website .
The complaint did not mention the exact amount of damages sought, although maintained that thousands of investors could suffer losses. HDFC Bank could not immediately be reached for comment.
According to the suit, bank officials are “engaged in a course of planning, planning, conspiracy and conduct according to which they act knowingly or recklessly, transactions, practices and courses of business that operated as a fraud and fraud Are “, resulting in loss to investors.
The allegations related to vehicle finance are vertical, where the bank has later admitted that some disturbances were found resulting in action against some officers.
The bank had inadequate disclosure controls and internal control over procedures and financial reporting, thereby maintaining unfair lending practices in financing vehicles, making operations unstable and all of this materially negative impact on its financial condition and reputation It was likely to fall, it alleged.
“The bank’s public statements were materially false and misleading at all relevant times,” the suit claims.
The defendants “knew that the unfavorable facts” were not disclosed and were “being hidden from the public”, he said, adding that “the positives being represented were then materially false and misleading. The individual defendants were liars.” Statements and are liable for. ” Default sought here “.
The period during which investors have incurred losses is between July 31, 2019 and July 10, 2020, known as the “class period”.
“Throughout the class period, defendants made materially inaccurate and misleading statements about the bank’s business, operating and compliance policies,” it alleged.
After the investigation was initiated by the law firm, the bank termed the move a “trivial” claim that it was transparent in all its disclosures.
According to reports, the bank bundled auto loans sold by it as well as vehicle tracking devices, resulting in additional costs to the borrower, and concerns over privacy.
There was speculation about the circumstances under which the head of the unit left office, but the bank later clarified that it was a scheduled retirement.
HDFC Bank American Depository Receipts on the NYSE were trading at $ 50.05, down 0.81 percent at 2115 hours IST. The stock closed the day down 0.94 percent to close at Rs 1,094.25 on the BSE.

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