KeyCorp Class Action Lawsuit - KEY
Case Summary
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The KeyCorp class action lawsuit seeks to represent purchasers or acquirers of KeyCorp (NYSE: KEY) securities between February 27, 2020 and June 9, 2023, inclusive (the “Class Period”). Captioned Gurevitch v. KeyCorp, No. 23-cv-01520 (N.D. Ohio), the KeyCorp class action lawsuit charges KeyCorp and certain of its top current and former executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the KeyCorp class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the KeyCorp class action lawsuit must be filed with the court no later than October 3, 2023.
CASE ALLEGATIONS: KeyCorp operates as the holding company for KeyBank National Association, which provides various retail and commercial banking products and services in the U.S. One of KeyCorp’s principal sources of revenue is net interest income (“NII”) which is the difference between interest income received on earnings assets and loan-related fee income, and interest expense paid on deposits and borrowing.
The KeyCorp class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) KeyCorp downplayed concerns with its liquidity while overstating the effectiveness of its long-term liquidity strategy; (ii) KeyCorp overstated its projected NII for the second quarter and full year of 2023, as well as related positive NII drivers, while downplaying negative NII drivers; (iii) as a result, KeyCorp was likely to negatively revise its previously issued NII guidance; and (iv) the above, once revealed, was likely to negatively impact KeyCorp’s business, financial results, and reputation.
On March 6, 2023, KeyCorp disclosed that it had downwardly revised its fiscal year 2023 guidance for NII, stating that it expects fiscal year 2023 NII to rise by 1% to 4% compared to fiscal year 2022, representing a significant reduction from KeyCorp’s prior guidance that fiscal year 2023 NII would rise 6% to 9% compared to fiscal year 2022. On this news, the price of KeyCorp stock declined more than 3%.
Then, on March 13, 2023, following the collapse of Silvergate Bank, Silicon Valley Bank, and Signature Bank, Odeon Capital Group LLC downgraded KeyCorp’s stock to hold from buy and BofA Global Research cut its price target on KeyCorp stock to $17 from $20. On this news, the price of KeyCorp stock declined more than 27%.
Thereafter, on June 12, 2023, KeyCorp’s Chief Financial Officer, defendant Clark H. I. Khayat, disclosed that KeyCorp’s anticipated second quarter 2023 NII to be softer than earlier expected “based on funding mix and deposit cost pressures.” On the same day, KeyCorp’s Chairman and Chief Executive Officer, defendant Christopher M. Gorman, disclosed that clients are demanding higher interest rates on their deposits, and that banks of KeyCorp’s size are likely facing higher capital and liquidity requirements by regulators. On this news, the price of KeyCorp stock declined more than 4%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired KeyCorp securities during the Class Period to seek appointment as lead plaintiff of the KeyCorp class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the KeyCorp class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the KeyCorp class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the KeyCorp class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.