The lawsuit, filed by Pomerantz LLP, alleges that HDFC Bank and its leadership engaged in deceptive business practices that misled shareholders. The legal action centers on events beginning in March 2026, when then-Chairman Atanu Chakraborty resigned, citing internal practices that conflicted with his personal ethics. His departure caused the bank’s stock to plummet by 7.28% in a single session.

Further scrutiny intensified in May 2026 following reports that HDFC allegedly funneled roughly $4.7 million to the Maharashtra State Road Development Corporation. The payments were reportedly disguised as road safety sponsorship funds to secure large deposits at inflated interest rates. An internal investigation later implicated over ten senior officials, including CEO Sashidhar Jagdishan, in the scheme. Investors who held HDFC securities during the class period must petition the court to serve as Lead Plaintiff by October 13, 2026.