KeyCorp 401(k) Losses

Zimmerman Reed is investigating KeyCorp (NYSE: KEY) for potential violations of the Employee Retirement Income Security Act of 1974 ("ERISA"). The investigation follows KeyCorp's announcement of large loan losses and an adverse tax ruling which led to a decline in the value of the company's stock. Current and former employees of KeyCorp, who hold KeyCorp stock in the KeyCorp 401(k) Savings & Investment Plan, may have an ERISA claim.

Under ERISA, KeyCorp employees can file a lawsuit if the Administrator of the Plan put employees' retirement savings at risk thus violating the Administrator's fiduciary duty to its employees. A fiduciary is the person who exercises discretion over the management of plan assets or exercises discretionary control over the administration of the plan. If a Plan Administrator imprudently invests employee retirement fund assets in the company's own stock, it may have breached its fiduciary duty.

ERISA is a federal law that establishes minimum standards for pension and health plans set up by private businesses. ERISA was designed to protect employees who participate in employee benefit plans, including employees with stock options in a company. Stock options are a form of compensation in which employees are given the opportunity to purchase shares of the company stock at a certain price.

Current and former employees of KeyCorp, who hold KeyCorp stock in the KeyCorp 401(k) Savings & Investment Plan, may have a claim to recover losses in their retirement investment. To learn more call 800.755.0098. If you would like additional information about the investigation, or believe you have experienced a loss, please fill out our information request form and one of our experienced securities attorneys will contact you shortly.