US based Rosen Law Firm to initiate class action lawsuit against HDFC Bank

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. There were allegations that the bank had forced its car loan customers to purchase a vehicle tracking device.

There were reports that credit information bureau Experian Plc’s Indian unit had informed the Reserve Bank of India (RBI) that HDFC Bank has been late in providing details of its loans, including the repayment status of its millions of retail borrowers. The RBI had sought details about HDFC Bank’s probe in to the improprieties in its vehicle finance division. Aditya Puri, Managing Director and Chief Executive Officer at HDFC Bank, had told shareholders that following a whistleblower complaint, HDFC had conducted an internal investigation into the car loan business, and had taken strict action against employees who were found to have been involved in “personal misconduct”.

According to the law firm statement, “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.”

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 whistleblower group accused the software giant’s management of “unethical” steps to boost short-term revenue and profits.

Another litigation firm Schall Law Firm is also preparing for a class action suit against HDFC Bank.