KeyCorp (NYSE: KEY)

This lawsuit is for anyone who acquired securities in KeyCorp (NYSE: KEY) from February 27, 2020 through June 9, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by downplaying concerns that the Company had with its liquidity while overstating the effectiveness of the Company’s long-term liquidity strategy.

On March 6, 2023, Key disclosed that it had revised its Full Year 2023 financial guidance, estimating net interest income will rise only 1% to 4%, compared to the previous estimate of 6% to 9%. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on March 13, 2023, following the collapses of multiple banks, investors grew concerned over Key’s liquidity. The same day, Odeon Capital Group LLC and BofA Global Research both downgraded the Company’s stock. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on June 12, 2023, Key’s Chief Financial Officer stated that the Company’s second quarter 2023 net interest income was excepted to be softer due to “funding mix and deposit cost pressures.” The Company disclosed that clients were demanding higher interest rates on deposits, and that banks of Key’s size are likely facing higher capital and liquidity requirements by regulators. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in KeyCorp (NYSE: KEY) from February 27, 2020 through June 9, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.