Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against KeyCorp (KEY)

Law Offices of Howard G. Smith reminds investors of the upcoming October 3, 2023 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased 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.

Investors suffering losses on their Key investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

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 fell $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 expected 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.

If you purchased or otherwise acquired 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 if you meet certain legal requirements. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

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