The complaint identifies CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan as individual defendants, asserting they maintained authority over the bank's financial disclosures and SEC filings during the class period. Plaintiffs allege that the bank misstated net interest income and operating expenses by masking interest markups as marketing expenditures. This practice, according to the filing, contradicts the internal control certifications signed by both executives under the Sarbanes-Oxley Act.

Legal counsel Joseph E. Levi noted that the core of the dispute centers on the accuracy of public statements versus internal knowledge of the payment structure. Following two disclosure events related to these findings, HDFC Bank's American Depositary Shares (HDB) saw a cumulative decline of $3.11, closing at $23.78 on May 27, 2026. Interested parties have until October 13, 2026, to apply for lead plaintiff status in the ongoing case.