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4 frequently aSKed questions in THE KEYCORP CLASS ACTION LAWSUIT

9/27/2023

If you suffered losses in KeyCorp contact KeyCorp stock loss lawyer Timothy L. Miles about a KeyCorp lawsuit

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 losses in KeyCorp stock and wish to serve as lead plaintiff in the KeyCorp class action lawsuit, please provide your information below. You can also contact KeyCorp Stock Loss Lawyer Timothy L. Miles by calling 855/846-6529 or via e-mail at [email protected].

Lead plaintiff motions for the KeyCorp class action lawsuit  must be filed with the court no later than October 3, 2023.

Read on for answers to four frequently asked questions about the KeyCorp class action lawsuit.

what are the ALLEGATIONS IN THE KEYCORP CLASS ACTION LAWSUIT?

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 who suffered losses in KeyCorp stock.

WHAT IS THE LEAD PLAINTIFF PROCESS IN THE KEYCORP CLASS ACTION LAWSUIT?

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased and suffered losses in KeyCorp stock to seek appointment as lead plaintiff in 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 class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. If you suffered losses in KeyCorp stock, and have further questions, contact KeyCorp stock loss Lawyer Timothy L. Miles today who will fight to recover your damages in a KeyCorp lawsuit if you suffered losses in KeyCorp stock.

IF I SUFFERED LOSSES IN KEYCORP STOCK, WHAT ARE THE BENEFITS OF SERVING AS LEAD PLAINTIFF IN THE KEYCORP CLASS ACTION LAWSUIT ?

Serving as a Lead Plaintiff in the KeyCorp class action lawsuit has several advantages and important benefits including:

A Lead Plaintiff is able to negotiate more competitive attorney fees and reduce other litigation costs by actively monitoring the class counsel.
Lead Plaintiff has the benefit of being able to manage the litigation primarily by overseeing and monitoring the progress of the action and the efforts of counsel, and being able to review and comment on important filings and other documents pertaining to the prosecution of the action.
There is no financial risk in serving as a Lead Plaintiff because Lead Counsel advances all costs and expenses incurred int the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class.
Lead Plaintiff has the benefit involved and active in all negotiations relating to any settlement.
Lead Plaintiffs that continue owning the stock of the defendant will enjoy the long-term benefits from governance reform resulting from the litigation.

Thus, there are numerous benefits to serving as lead plaintiff in the KeyCorp class action lawsuit if you suffered losses in KeyCorp stock.

HOW WAS THE CLASS PERIOD DETERMINED IN THE CLASS ACTION AGAINST KEYCORP?

In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives. The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading. The class period ends when the truth is revealed to the investing public through a corrective disclosure.

In order to be a part of the class in the KeyCorp class action lawsuit, you must have suffered losses in KeyCorp stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated to be included in the class action against KeyCorp.

CONTACT A KEYCORP STOCK LOSS LAWYER TODAY IF YOU SUFFERED IN LOSSES KEYCORP STOCK ABOUT A KEYCORP CLASS ACTION LOSSES LAWSUIT

If you suffered losses in KeyCorp stock, contact KeyCorp stock loss lawyer Timothy L. Miles today for a free case evaluation about a class action against KeyCorp. Call today and see what a KeyCorp stock loss lawyer can do for you if you suffered losses in KeyCorp stock.