The complaint, filed by Hagens Berman, claims that HDFC Bank and top leadership, including CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan, misled shareholders regarding the company's financial integrity and regulatory compliance. Allegations center on a covert arrangement where the bank allegedly funneled roughly 45 crore rupees—approximately $4.7 million—to the Maharashtra State Road Development Corporation. This payment was reportedly designed to provide the state firm with a 6.01% interest rate, circumventing Reserve Bank of India regulations by disguising the markup as sponsorship for a road safety campaign.

Financial discrepancies surfaced publicly throughout early 2026, leading to significant stock volatility. On March 18, the bank’s ADS prices dropped 7.28% following the abrupt resignation of Chairman Atanu Chakraborty, who cited internal practices misaligned with his personal ethics. Further scrutiny arrived on May 27, when an investigative report revealed an internal probe into the leadership’s marketing expenditures. Hagens Berman partner Reed Kathrein stated the firm is investigating whether executives concealed these payments while projecting an image of robust corporate governance to the public.