Kyndryl Holdings (KD) Faces Securities Class Action Amid 55% Stock Drop After Four Bombshell Disclosures Hagens Berman

Kyndryl Holdings, Inc. (KD) Securities Class Action:

In the past, infrastructure services company Kyndryl has repeatedly emphasized the effectiveness of its internal control over financial reporting.

The complaint alleges, in part, that Kyndryl's disclosure controls and procedures and internal control over financial reporting were ineffective.

Investors began to learn the truth on February 9, 2026, when Kyndryl notified investors that it would not timely file its quarterly report because, in contrast to Kyndryl's assurances, its Audit Committee“is reviewing its cash management practices, related disclosures (including the drivers of the Company's free cash flow metric), [and] the efficacy of the Company's internal control over financial reporting[.]”

Kyndryl also revealed another bombshell – namely, that it received document requests from the Division of Enforcement of the SEC related to matters being reviewed by the Audit Committee.

Lastly, the company announced that, on February 5, CFO David Wyshner and General Counsel Edward Sebold departed effective immediately, while Comptroller Vineet Khurana stepped down.

Since these events began to unfold, over $2.4 billion of Kyndryl's market capitalization has been wiped out.

“We're investigating whether, having assured investors of the effectiveness of its internal controls and repeatedly touted free cash flow growth, Kyndryl may have intentionally misled investors about the propriety of its deferring vendor payments quarter to quarter and whether such practices may have allowed the company to improperly unlock cash,” said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.

If you invested in Kyndryl and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now ))

If you'd like more information and answers to additional frequently asked questions about the firm's Kyndryl investigation, read more )

Whistleblowers: Persons with non-public information regarding Kyndryl should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ....

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Contact:
Reed Kathrein, 844-916-0895