Mumbai, Aug. 26 -- HDFC Bank Ltd, India's largest private lender, has been sued in the US by investors who allege that the bank violated American securities laws, causing them losses, and are seeking compensation.

The lawsuit escalates a controversy that had until now involved investigations by multiple US law firms into the bank's disclosures and governance practices.

Jwalant Natvarlal Soneji, an HDFC Bank investor, filed a securities fraud class-action complaint on 13 August in the US District Court for the Southern District of New York against the lender, its managing director and chief executive officer Sashidhar Jagdishan and chief financial officer Srinivasan Vaidyanathan.

The complaint seeks to represent investors who purchased ...