LYV - Bragar Eagel & Squire P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against KeyCorp Live Nation and Applied Digital and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, Sept. 22, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of KeyCorp (NYSE:KEY), Live Nation Entertainment, Inc. (NYSE:LYV), and Applied Digital Corporation (NASDAQ:APLD). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
KeyCorp (NYSE:KEY)
Class Period: February 27, 2020 – June 9, 2023
Lead Plaintiff Deadline: October 3, 2023
Key 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 the Company's principal sources of revenue is net interest income ("NII"), which is calculated as the difference between interest income received on earning assets (such as loans and securities) and loan-related fee income, and interest expense paid on deposits and borrowings.
Key has repeatedly downplayed concerns regarding its liquidity while touting the effectiveness of its long-term liquidity strategy. For example, the Company has repeatedly assured investors that its strong core deposit base, in conjunction other funds, supports the Company's liquidity risk management strategy, and that the Company's liquid asset portfolio, inter alia, exceeds the estimated amount needed to manage through an adverse liquidity event.
On March 6, 2023, Key filed its presentation slides for the 2023 RBC Capital Markets Financial Institutions Conference as an exhibit to a Securities and Exchange Commission filing, wherein the Company disclosed that it had downwardly revised its FY 2023 guidance for NII, stating that it expects FY 2023 NII to rise by 1% to 4% (assuming a cumulative beta in the mid- to high 30s) compared to FY 2022, representing a significant reduction from the Company's prior guidance that FY 2023 NII would rise 6% to 9% compared to FY 2022. The Company attributed this negatively revised guidance to "Deposit Beta and Funding Costs", explaining that "[m]arginal funding costs are increasing with rising market interest rates, and are expected to weigh on [NII.]"
On this news, Key's stock price fell $0.60 per share, or 3.31%, to close at $17.55 per share on March 7, 2023.
On March 13, 2023, following the collapse of Silvergate Bank on March 8, 2023, Silicon Valley Bank on March 10, 2023, and Signature Bank on March 12, 2023, investors grew increasingly concerned about Key's own liquidity. That same day, Odeon Capital Group LLC downgraded the Company's stock to hold from buy and BofA Global Research ...