KD CLASS ACTION LAWSUIT FILED: Kyndryl Holdings, Inc. has been Sued for Securities Fraud after Accounting Review and CFO Exit Lead to 55% Stock Drop – BFA Law
NEW YORK–(BUSINESS WIRE)–
Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Kyndryl Holdings, Inc. (NYSE:KD) and certain of the Company’s senior executives for securities fraud after significant stock drops resulting from the potential violations of the federal securities laws.
If you invested in Kyndryl, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/kyndryl-holdings-class-action-lawsuit.
Investors have until April 13, 2026, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Kyndryl securities. The case is pending in the U.S. District Court for the Eastern District of New York and is captioned Brander v. Kyndryl Holdings, Inc., et al., No. 1:26-cv-00782.
Why is Kyndryl Being Sued for Securities Fraud?
Kyndryl is a provider of enterprise technology services offering advisory, implementation, and managed service capabilities to customers in more than 60 countries. Kyndryl is the world’s largest IT infrastructure services provider.
As alleged, Kyndryl misrepresented its cash management practices, including the drivers of its adjusted free cash flow metric, and the efficacy of Kyndryl’s internal controls over financial reporting for FY2025 and the first three quarters of FY2026.
Why did Kyndryl’s Stock Drop?
On February 9, 2026, Kyndryl announced that it would delay the release of its fiscal Q3 2026 financial statement pending an accounting review into its cash management practices and related disclosures, including regarding the drivers of Kyndryl’s adjusted free cash flow metric, and certain other matters following document requests from the SEC. Kyndryl also announced the immediate departures of its CFO and General Counsel.
This news caused the price of Kyndryl stock to drop $12.90 per share, or 55%, from a closing price of $23.49 per share on February 8, 2026, to $10.59 per share on February 9, 2026.
Click here for more information: https://www.bfalaw.com/cases/kyndryl-holdings-class-action-lawsuit.
What Can You Do?
If you invested in Kyndryl, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information for the Kyndryl ($KD) Class Action by visiting:
https://www.bfalaw.com/cases/kyndryl-holdings-class-action-lawsuit
Or contact:
Adam McCall
[email protected]
212.789.3619
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases/kyndryl-holdings-class-action-lawsuit
Attorney advertising. Past results do not guarantee future outcomes.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260212122213/en/
Adam McCall
[email protected]
212.789.3619
KEYWORDS: United States North America New York
INDUSTRY KEYWORDS: Class Action Lawsuit Professional Services Legal
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