NEW YORK, Aug. 08, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Ohio on behalf of all persons or entities who purchased the securities of KeyCorp. (“KeyCorp.” or the “Company”) (NYSE: KEY) between February 27, 2020 and June 9, 2023, both dates inclusive (the “Class Period”).
The Complaint alleges that Defendants 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.
Investors who purchased or otherwise acquired shares of KeyCorp should contact the Firm prior to the October 3, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
