KeyCorp (KEY) Misled Investors Regarding its Liquidity Strategy
A shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired KeyCorp (NYSE: KEY) securities between February 27, 2020 and June 9, 2023. Key operates as the holding company for KeyBank National Association (“KeyBank”), which provides various retail and commercial banking products and services in the U.S.
According to the complaint, one of the Company’s principal sources of revenue is net interest income (“NII”), which is calculated as the difference between interest income received on earning assets (such as loans and securities) and loan-related fee income, and interest expense paid on deposits and borrowings. During the class period, defendants failed to disclose that: (i) Key downplayed concerns with its liquidity while overstating the effectiveness of its long-term liquidity strategy; (ii) Key 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, Key was likely to negatively revise its previously issued NII guidance; and (iv) the foregoing, once revealed, was likely to negatively impact Key’s business, financial results, and reputation.
As news of these wrongful acts and omissions came to light, Key’s stock declined, harming investors.
What Now: Similarly situated shareholders may be eligible to participate in the class action against KeyCorp. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
