LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired KeyCorp (“Key” or the “Company”) (NYSE: KEY) securities between February 27, 2020 and June 9, 2023, inclusive (the “Class Period”). Key investors have until October 3, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
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, Key’s stock price fell $0.60, or 3.3%, to close at $17.55 per share on March 7, 2023, thereby injuring investors.
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, Key’s stock price $6.59, or 40.7%, to close at $11.38 per share on March 13, 2023.
Then, 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, Key’s stock price fell $0.46, or 4.3%, to close at $10.22 per share on June 12, 2023, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Key downplayed concerns with its liquidity while overstating the effectiveness of its long-term liquidity strategy; (2) 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; (3) as a result, Key was likely to negatively revise its previously issued NII guidance; (4) all the foregoing, once revealed, was likely to negatively impact Key’s business, financial results, and reputation; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Key securities during the Class Period, you may move the Court no later than October 3, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Key securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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