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KeyCorp might have breached its fiduciary duty to former and current employees who invested their 401(K) monies into KeyCorp stock.
Investigation Source
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- Unsuitable Investments
- Retirement Asset
- Investment Advisor Duties
Product or Service
- 401(K)
Injury Type
- Monetary Loss
Investigation Details
Investigation and pending class action against KeyCorp on behalf of participants and beneficiaries of the KeyCorp 401(k) Plans.
The class action lawsuit alleges KeyCorp violated ERISA in connection with the loss of value in KeyCorp stock acquired and held by present and former employees of KeyCorp through the Plans.
The goal of this litigation is to recover damages sustained by the participants and beneficiaries of the Plans.
The class action complaint alleges that KeyCorp engaged in highly risky lending practices such as construction loans with no money down and indirect consumer loans extended to customers outside its core regional banking franchise, artificially inflating its stock price. These loans subsequently and predictably led to massive loan losses resulting in a sharp drop in the price of KeyCorp stock.
The class action lawsuit alleges KeyCorp violated ERISA in connection with the loss of value in KeyCorp stock acquired and held by present and former employees of KeyCorp through the Plans.
The goal of this litigation is to recover damages sustained by the participants and beneficiaries of the Plans.
The class action complaint alleges that KeyCorp engaged in highly risky lending practices such as construction loans with no money down and indirect consumer loans extended to customers outside its core regional banking franchise, artificially inflating its stock price. These loans subsequently and predictably led to massive loan losses resulting in a sharp drop in the price of KeyCorp stock.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| KeyCorp (KEY) | KeyCorp is a bank holding company for KeyBank National Association (KeyBank), its principal subsidiary. |