The lawsuit, filed by Hagens Berman, covers HDFC securities purchased between July 17, 2023, and May 26, 2026. Plaintiffs allege that CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan oversaw a secret arrangement to funnel approximately Rs 45 crore to the Maharashtra State Road Development Corporation. By masking these payments as road safety sponsorships, the bank reportedly bypassed Reserve Bank of India interest rate regulations to secure large state deposits.

Market confidence in the bank faltered as details of the alleged misconduct emerged. In March 2026, the sudden resignation of Independent Director Atanu Chakraborty, who cited a divergence from his personal ethics, triggered a 7.28% drop in HDFC American Depositary Shares. Further volatility followed in May 2026 after media reports detailed an internal probe into the leadership's marketing expenditures, causing shares to slide an additional 4.1% to $23.78.

Investors who incurred losses during the specified class period may contact the law firm to participate in the pending litigation. Hagens Berman is also inviting whistleblowers with non-public information to assist in the ongoing investigation, citing the potential for regulatory rewards.