The lawsuit alleges that HDFC Bank executives, including CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan, orchestrated a plan to bypass Reserve Bank of India regulations. According to the complaint, the bank funneled approximately 45 crore rupees—roughly $4.7 million—to the Maharashtra State Road Development Corporation. These payments were reportedly disguised as marketing expenses for a road safety campaign to mask interest rates that were 2.51% above standard retail levels.

Market confidence began to erode in March 2026, when Chairman Atanu Chakraborty resigned, citing practices that were not in alignment with his professional ethics. This triggered a 7.28% drop in HDFC ADS. Further scrutiny followed in May 2026 after an investigative report detailed an internal probe into the leadership's conduct, leading to an additional 4.1% decline in share price. Hagens Berman partner Reed Kathrein stated the investigation is focused on whether senior leadership concealed these inducements while publicly maintaining a facade of strong corporate governance. Investors who suffered losses during the class period must file for lead plaintiff status by October 13, 2026.