KeyCorp’s directors allegedly misled investors about the company’s liquidity issues for three years before downwardly revising financial guidance for income twice, prompting a significant stock drop, a shareholder derivative suit says.
The board was allegedly aware of potential liquidity risks since the beginning of 2020, but misrepresented to investors that it actively managed those risks and maintained an adequate liquid asset portfolio until March 2023, according to the complaint filed Monday in US District Court for the Northern District of Ohio.
KeyCorp filed regulatory disclosures that reflected a strong liquid asset portfolio as of December 2022 and net interest income ...
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