US-based investor rights law firm Rosen Law Firm has announced an investigation of potential securities claims on behalf of shareholders of HDFC Bank following allegations that the bank may have issued materially misleading business information to investors.
The development follows after reports in July said that HDFC Bank had conducted an investigation into the "improper lending practices and conflicts of interests" in its vehicle-financing arm.
The law firm's statement said that post the media reports, HDFC Bank's American depository receipt price fell $1.37 per share, or 2.83 per cent, to close at $47.02 per share on July 13, 2020.
On July 19, 2020, the NYSE-listed HDFC Bank reported its financial results for the first quarter of the Bank's 2021 fiscal year, missing analyst estimates with respect to net profit and reporting a deterioration in its asset quality, the statement noted.
"Rosen Law Firm is preparing a securities lawsuit on behalf of HDFC Bank shareholders. If you purchased securities of HDFC Bank please visit the firm's website at http://www.rosenlegal.com/cases-register-1922.html to join the securities action," it said.
The firm said that it represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
Last year the law firm had filed a class action lawsuit against Infosys after an anonymous whistle blower group accused the software giant's management of "unethical" steps to boost short-term revenue and profits..