Rosen Law Firm of New York has declared that an investigative inquiry will take place to probe into HDFC Bank’s security claims. A lawsuit has been filed by the shareholders of the Bank on the basis of the allegations about the dissemination of materially misleading business data by the Bank authority with the investors.
The lawyers at the firm are working on a securities lawsuit on behalf of the shareholders of the Bank and have also released a press report.
The ADRs of HDFC Bank are listed on the New York Stock Exchange. The law firm also revealed that there had been allegations about conflict of interest and improper practices as well, with the involvement of the previous unit head.
The firm also disclosed that the American Depository receipt price of HDFC Bank has decreased by 2.83% or $1.37 per share. Besides, the financial results released by the Bank on 19th July does not disclose the analyst estimates with regard to the net profits of the Bank. The firm also divulged about the report to media houses, adding that there has been a deterioration in HDFC bank’s financial assets and reserves.
According to the 6th of August media reports of The Print, the Indian unit of Experian Plc had informed the RBI that HDFC Bank has made an undue delay in furnishing the clients with loan details and has also been late in revealing the repayment status to the millions of retail borrowers of the Bank.
However, the CEO and outgoing MD of HDFC Bank, Aditya Puri, said that there had been an extensive internal inquiry that has revealed that there is no issue of conflicts of interest whatsoever. At the Annual General Meeting of the Bank, Aditya Puri announced that disciplinary action had been taken for personal and professional misconduct exhibited by some of the employees of the Bank.
Rosen Law Firm is known for its representation of investors across the world. The lawyers at the firm work on shareholder derivative litigation and securities class actions. The law firm had been in the Indian news while preparing the lawsuit of the class action against Infosys, that had later been dismissed.