Kyndryl Faces Securities Fraud Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy KD?
Source: PRnewswire
- Lawsuit Background: Kyndryl Holdings, Inc. is facing a class action lawsuit for securities fraud due to false financial reporting between August 7, 2024, and February 9, 2026, filed in the U.S. District Court for the Eastern District of New York, case number 1:26-cv-00782, highlighting serious issues in the company's financial transparency.
- Allegations of Financial Misstatements: The lawsuit alleges that Kyndryl's financial statements were materially misstated and that the company lacked adequate internal controls, resulting in its inability to timely file its quarterly report with the SEC for the quarter ending December 31, 2025, which could significantly undermine investor confidence.
- Investor Actions: Affected investors must apply for lead plaintiff status by April 13, 2026, to represent the class in litigation, which may impact their recovery rights, reflecting the potential implications of legal proceedings on investor interests.
- Role of Law Firm: Kessler Topaz Meltzer & Check, LLP, as the plaintiff-side law firm, focuses on securities fraud class actions and represents both individual and institutional investors, demonstrating its expertise and influence in the securities litigation landscape.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy KD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on KD
Wall Street analysts forecast KD stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 12.240
Low
28.00
Averages
33.25
High
40.00
Current: 12.240
Low
28.00
Averages
33.25
High
40.00
About KD
Kyndryl Holdings, Inc. is a provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to customers in more than 60 countries. The Company designs, builds, manages and modernizes complex information systems around the world. Its segments include United States, Japan, Principal Markets and Strategic Markets. It offers services across domains, such as cloud services, core enterprise and zCloud services, applications, data and artificial intelligence (AI) services, digital workplace services, security and resiliency services and network and edge services. Its advisory and implementation services are branded as Kyndryl Consult. It provides end-to-end enterprise data services, including data transformation, data architecture and management, data governance and compliance and data migration. It provides comprehensive enterprise cybersecurity services for chief information security officers (CISOs) and chief risk officers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kyndryl Shares Surge Following Favorable Accounting News, But Challenges Remain.
- Earnings Report Update: Kyndryl Holdings filed its delayed quarterly earnings report, which contributed to a recovery in its stock price.
- Positive Financial Outlook: The company provided a positive update regarding its financial reporting, indicating improved prospects.
See More
Kyndryl Discloses Financial Report and Internal Control Issues
- Financial Report Update: Kyndryl has filed its quarterly report for the quarter ended December 31, 2025, along with amendments to its annual report for the fiscal year ended March 31, 2025, indicating efforts to enhance financial transparency without restating any prior financial data.
- Internal Control Deficiencies: The company disclosed material weaknesses in its internal controls over financial reporting, particularly regarding cash management and deferring vendor payments, highlighting the need for improved compliance and risk management practices.
- Remediation Plan: Kyndryl has outlined a remediation plan aimed at continuously enhancing and updating its internal controls to ensure more accurate and reliable financial reporting in the future, thereby boosting investor confidence.
- Business Stability: Despite the internal control issues, Kyndryl emphasizes that its financial position remains strong, with its global team focused on delivering mission-critical services and achieving multi-year performance objectives, demonstrating resilience in the market.
See More
Kyndryl Expands CSR Commitment in India to Train 50,000 Students
- AI Skills Training Initiative: Kyndryl has announced a commitment to train 50,000 students and 30,000 youth in India, aiming to enhance AI skills through inclusive training, thereby supporting national digital and skilling priorities and fostering future talent development.
- Public Sector AI Readiness: Kyndryl will integrate its AI for Governance programs with the Government's Karmayogi iGOT platform, providing courses on AI fundamentals and cyber safety to help officials identify AI application opportunities and strengthen cyber resilience in public institutions.
- AI Education in Government Schools: Kyndryl will launch a foundational AI learning initiative in government schools in Varanasi and Ayodhya, aiming to provide age-appropriate AI education to 50,000 students and upskill 1,000 teachers over two years.
- Youth Empowerment Program: Kyndryl plans to train graduates to become AI change-makers, with an initiative to empower 30,000 youth annually across India over three years, supporting rural governance, agriculture, and livelihood development to foster sustainable AI ecosystems.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Stock Price Plunge: Kyndryl's shares fell 55% on February 9, 2026, following the announcement of its inability to timely file its quarterly report, resulting in a market capitalization loss exceeding $3 billion, reflecting strong market concerns over internal control deficiencies.
- Internal Control Issues: The lawsuit alleges that Kyndryl made materially misleading statements regarding its financial reporting and failed to manage internal controls effectively, leading to significant investor misunderstandings about the company's financial health, which could impact future financing capabilities.
- Executive Departures: Following the departure of key executives, including Audit Committee members, Kyndryl disclosed significant weaknesses in its internal controls, exacerbating market concerns about the company's governance structure and potentially undermining investor confidence.
- SEC Investigation: The company has received document requests from the SEC related to matters under review by the Audit Committee, indicating regulatory scrutiny over its financial management practices, which may lead to stricter oversight and legal repercussions.
See More
Kyndryl Faces Class Action Lawsuit and Executive Departures
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Kyndryl, alleging securities fraud and other unlawful business practices, with investors needing to apply as Lead Plaintiff by April 13, 2026, highlighting significant legal risks facing the company.
- Delayed Financial Reporting: On February 9, 2026, Kyndryl filed a Notification of Late Filing with the SEC, indicating it could not submit its quarterly report for the period ending December 31, 2025 on time, while also revealing an ongoing SEC investigation into its financial reporting, which may undermine investor confidence.
- Executive Departures: On the same day, Kyndryl announced the immediate departure of CFO David Wyshner and General Counsel Edward Sebold, along with a role change for Senior VP and Global Controller Vineet Khurana, creating potential uncertainty in corporate governance and strategic direction.
- Stock Price Plunge: Following these announcements, Kyndryl's stock price plummeted by $12.90, or 55%, closing at $10.59 per share on February 9, 2026, reflecting a pessimistic outlook from the market regarding the company's future prospects, which could impact its financing and operational capabilities.
See More
Kyndryl Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Kyndryl Holdings, Inc. (NYSE: KD) is facing a securities fraud class action lawsuit for alleged material misstatements regarding its cash management and internal controls during the period from August 7, 2024, to February 9, 2026, which could undermine investor confidence.
- Legal Proceedings: The lawsuit has been filed in the United States District Court for the Eastern District of New York, and investors must apply for lead plaintiff status by April 13, 2026, which may influence the outcome of the class action.
- Financial Implications: The allegations claim that Kyndryl's financial statements were materially misstated and that the company lacked adequate internal controls, resulting in its inability to timely file its quarterly report on Form 10-Q for the quarter ended December 31, 2025, potentially affecting the company's future financial transparency and market trust.
- Investor Actions: Kessler Topaz Meltzer & Check, LLP encourages affected investors to contact their firm for a free case evaluation, indicating a proactive approach in securities fraud cases aimed at providing recovery options for investors.
See More
Kyndryl Shares Surge Following Favorable Accounting News, But Challenges Remain.
- Earnings Report Update: Kyndryl Holdings filed its delayed quarterly earnings report, which contributed to a recovery in its stock price.
- Positive Financial Outlook: The company provided a positive update regarding its financial reporting, indicating improved prospects.
See More
Kyndryl Discloses Financial Report and Internal Control Issues
- Financial Report Update: Kyndryl has filed its quarterly report for the quarter ended December 31, 2025, along with amendments to its annual report for the fiscal year ended March 31, 2025, indicating efforts to enhance financial transparency without restating any prior financial data.
- Internal Control Deficiencies: The company disclosed material weaknesses in its internal controls over financial reporting, particularly regarding cash management and deferring vendor payments, highlighting the need for improved compliance and risk management practices.
- Remediation Plan: Kyndryl has outlined a remediation plan aimed at continuously enhancing and updating its internal controls to ensure more accurate and reliable financial reporting in the future, thereby boosting investor confidence.
- Business Stability: Despite the internal control issues, Kyndryl emphasizes that its financial position remains strong, with its global team focused on delivering mission-critical services and achieving multi-year performance objectives, demonstrating resilience in the market.
See More
Kyndryl Expands CSR Commitment in India to Train 50,000 Students
- AI Skills Training Initiative: Kyndryl has announced a commitment to train 50,000 students and 30,000 youth in India, aiming to enhance AI skills through inclusive training, thereby supporting national digital and skilling priorities and fostering future talent development.
- Public Sector AI Readiness: Kyndryl will integrate its AI for Governance programs with the Government's Karmayogi iGOT platform, providing courses on AI fundamentals and cyber safety to help officials identify AI application opportunities and strengthen cyber resilience in public institutions.
- AI Education in Government Schools: Kyndryl will launch a foundational AI learning initiative in government schools in Varanasi and Ayodhya, aiming to provide age-appropriate AI education to 50,000 students and upskill 1,000 teachers over two years.
- Youth Empowerment Program: Kyndryl plans to train graduates to become AI change-makers, with an initiative to empower 30,000 youth annually across India over three years, supporting rural governance, agriculture, and livelihood development to foster sustainable AI ecosystems.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Stock Price Plunge: Kyndryl's shares fell 55% on February 9, 2026, following the announcement of its inability to timely file its quarterly report, resulting in a market capitalization loss exceeding $3 billion, reflecting strong market concerns over internal control deficiencies.
- Internal Control Issues: The lawsuit alleges that Kyndryl made materially misleading statements regarding its financial reporting and failed to manage internal controls effectively, leading to significant investor misunderstandings about the company's financial health, which could impact future financing capabilities.
- Executive Departures: Following the departure of key executives, including Audit Committee members, Kyndryl disclosed significant weaknesses in its internal controls, exacerbating market concerns about the company's governance structure and potentially undermining investor confidence.
- SEC Investigation: The company has received document requests from the SEC related to matters under review by the Audit Committee, indicating regulatory scrutiny over its financial management practices, which may lead to stricter oversight and legal repercussions.
See More
Kyndryl Faces Class Action Lawsuit and Executive Departures
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Kyndryl, alleging securities fraud and other unlawful business practices, with investors needing to apply as Lead Plaintiff by April 13, 2026, highlighting significant legal risks facing the company.
- Delayed Financial Reporting: On February 9, 2026, Kyndryl filed a Notification of Late Filing with the SEC, indicating it could not submit its quarterly report for the period ending December 31, 2025 on time, while also revealing an ongoing SEC investigation into its financial reporting, which may undermine investor confidence.
- Executive Departures: On the same day, Kyndryl announced the immediate departure of CFO David Wyshner and General Counsel Edward Sebold, along with a role change for Senior VP and Global Controller Vineet Khurana, creating potential uncertainty in corporate governance and strategic direction.
- Stock Price Plunge: Following these announcements, Kyndryl's stock price plummeted by $12.90, or 55%, closing at $10.59 per share on February 9, 2026, reflecting a pessimistic outlook from the market regarding the company's future prospects, which could impact its financing and operational capabilities.
See More
Kyndryl Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Kyndryl Holdings, Inc. (NYSE: KD) is facing a securities fraud class action lawsuit for alleged material misstatements regarding its cash management and internal controls during the period from August 7, 2024, to February 9, 2026, which could undermine investor confidence.
- Legal Proceedings: The lawsuit has been filed in the United States District Court for the Eastern District of New York, and investors must apply for lead plaintiff status by April 13, 2026, which may influence the outcome of the class action.
- Financial Implications: The allegations claim that Kyndryl's financial statements were materially misstated and that the company lacked adequate internal controls, resulting in its inability to timely file its quarterly report on Form 10-Q for the quarter ended December 31, 2025, potentially affecting the company's future financial transparency and market trust.
- Investor Actions: Kessler Topaz Meltzer & Check, LLP encourages affected investors to contact their firm for a free case evaluation, indicating a proactive approach in securities fraud cases aimed at providing recovery options for investors.
See More
