InvestorQ : Why has Rosen Law firm filed a lawsuit against HDFC Bank?
prachi Patwardhan made post

Why has Rosen Law firm filed a lawsuit against HDFC Bank?

sara Kunju answered.
8 months ago

Rosen, a US based Law Firm, filed a class action lawsuit against HDFC Bank for undue losses suffered by some investors due to some misleading statements given by the lender. The case specifically referred to the HDFC Bank car loan customers who were forced to buy vehicle tracking devices between 2015 to 2019.

Rosen law firm filed the lawsuit against Aditya Puri as well as the designated CEO, Sashidhar Jagdishan. In addition, the company secretary, Santosh Haldankar is also up against the lawsuit. Rosen has called this a deliberate conspiracy by HDFC Bank in a fraudulent manner.

Rosen Law Firm specializes in securities class actions and shareholder derivative litigation. HDFC Bank ADR was down 2.83% at $47.02. Rosen has alleged that HDFC Bank did not disclose that it had inadequate disclosure controls in its vehicle-financing operations.

The lawsuit has also alleged that by due to their positions at HDFC Bank, the defendants had knowledge of the materially false and misleading statements and they cannot wash their hands away from the problem.

The genesis of this problem lies in the report that HDFC Bank pushed auto loan customers to buy GPS devices costing Rs.19,500 from 2015 to 2019 in a possible breach of guidelines.