Kyndryl Faces Class Action Lawsuit, Shares Plunge 55%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
0mins
Should l Buy KD?
Source: Globenewswire
- Class Action Filed: Berger Montague PC has initiated a class action lawsuit against Kyndryl Holdings on behalf of investors who acquired securities between August 7, 2024, and February 9, 2026, highlighting serious investor concerns regarding the company's financial transparency.
- Allegations of Financial Misstatements: The complaint alleges that Kyndryl's financial statements during the class period were materially misstated and that the company lacked adequate internal controls, resulting in its inability to timely file its Quarterly Report for the quarter ended December 31, 2025, which could undermine investor confidence.
- Stock Price Plunge: Following the revelation on February 9, 2026, regarding material weaknesses in internal controls and an SEC investigation, Kyndryl's shares plummeted by 55%, indicating a strong market reaction to the company's governance issues and leading to significant investor losses.
- Investor Rights Protection: Investors are urged to apply by April 13, 2026, to be appointed as lead plaintiffs in the class action, reflecting a growing concern over corporate governance and financial transparency that may influence future investment decisions.
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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: 12.100
Low
28.00
Averages
33.25
High
40.00
Current: 12.100
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 Recognized as Leader in Mainframe Modernization
- Market Leadership: Kyndryl has been recognized as a Leader in the IDC MarketScape 2025-2026 Worldwide Mainframe Modernization Infrastructure Solutions assessment, highlighting its competitive strength and influence in the mainframe services market.
- Enhanced Technical Capabilities: The report notes that Kyndryl employs approximately 7,000 mainframe specialists across 51 countries, enabling comprehensive mainframe infrastructure operations, planning, and implementation capabilities that help clients maximize the value of their data and workloads.
- AI Integration Advantage: By leveraging AI-driven capabilities like Kyndryl Bridge, Kyndryl has improved its ability to deliver mainframe services while preparing customers to take advantage of a new generation of AI mainframe functionalities, thereby enhancing operational efficiency and innovation potential.
- Customer Demand Response: As enterprises prioritize mainframe modernization to improve data access and address critical skills gaps, Kyndryl's services effectively meet the urgent market demand for efficient and intelligent mainframe solutions, further solidifying its market position.
See More
Kyndryl Faces Class Action Lawsuit
- Class Action Initiated: Kyndryl Holdings, Inc. (NYSE: KD) is facing a class action lawsuit due to significant misstatements in financial reports issued between August 7, 2024, and February 9, 2026, with investors required to file lead plaintiff motions by April 13, 2026, highlighting severe issues in the company's financial transparency.
- Delayed Financial Reporting: On February 9, 2026, Kyndryl filed a Notification of Late Filing, indicating its inability to timely submit the 10-Q report for the quarter ended December 31, 2025, which resulted in a 55% drop in stock price, reflecting strong market concerns regarding its financial health.
- Internal Control Deficiencies: The lawsuit alleges that Kyndryl has significant deficiencies in internal controls, failing to manage financial reporting effectively, and anticipates reporting material weaknesses for the fiscal year 2025 and the first two quarters of 2026, potentially undermining investor confidence in the company's future.
- Executive Departures: Kyndryl's Chief Financial Officer David Wyshner and General Counsel Edward Sebold have departed immediately, alongside Senior Vice President and Global Controller Vineet Khurana transitioning to a different role, raising further concerns about the company's governance structure and stability.
See More
Kyndryl Faces Class Action Lawsuit, Shares Plunge 55%
- Class Action Filed: Berger Montague PC has initiated a class action lawsuit against Kyndryl Holdings on behalf of investors who acquired securities between August 7, 2024, and February 9, 2026, highlighting significant investor concerns regarding the company's financial transparency.
- Misstatement Allegations: The complaint alleges that Kyndryl's financial statements during the class period were materially misstated and that the company lacked adequate internal controls, resulting in its inability to timely file its 10-Q report for the quarter ending December 31, 2025, which could impact future compliance.
- Stock Price Plunge: Following the revelation of material weaknesses in internal controls and an SEC investigation on February 9, 2026, Kyndryl's shares plummeted by 55%, causing substantial losses for investors and indicating a severe erosion of market confidence in the company's governance.
- Investor Rights Protection: Investors must seek to be appointed as lead plaintiffs by April 13, 2026, emphasizing the importance of corporate governance and financial transparency, which may influence future investment decisions and market confidence.
See More
Kyndryl Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Kyndryl Holdings, Inc. (NYSE: KD) is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with plaintiffs being investors who purchased securities between August 7, 2024, and February 9, 2025, claiming misrepresentations regarding the company's internal controls.
- Investor Rights: Affected investors can apply to serve as lead plaintiff by April 13, 2026, although they can still share in any recovery without being the lead, highlighting the legal system's role in protecting investor rights.
- Law Firm's Role: Bernstein Liebhard LLP, representing the plaintiffs, has recovered over $3.5 billion for clients since 1993, showcasing its extensive experience and success in class action litigation, which enhances investor confidence in their representation.
- Fee Structure: All legal representation is on a contingency fee basis, meaning investors incur no fees or expenses, which reduces the financial burden on investors seeking legal recourse and encourages more victims to pursue justice.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Lawsuit Deadline: ClaimsFiler reminds Kyndryl investors that those who purchased shares between August 7, 2024, and February 9, 2026, must file lead plaintiff applications by April 13, 2026, to protect their rights in the class action lawsuit.
- Disclosure Violations: Kyndryl and certain executives are accused of failing to disclose material information during the class period, violating federal securities laws, which could lead to significant financial losses for investors.
- Financial Reporting Delay: On February 9, 2026, Kyndryl announced it would be unable to timely file its Form 10-Q for the quarter ended December 31, 2025, and anticipates reporting material weaknesses in internal controls, impacting financial transparency.
- Stock Price Plunge: Following this news, Kyndryl's stock price plummeted by $12.90, or 55%, closing at $10.59 on February 9, 2026, indicating severe market concerns regarding the company's financial health.
See More
Kyndryl Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: A class action lawsuit has been filed on behalf of investors who purchased Kyndryl securities between August 7, 2024, and February 9, 2026, alleging that the company's financial statements were materially misstated and lacked adequate internal controls, resulting in the inability to timely file the quarterly report for December 31, 2025.
- Executive Departures: On February 9, 2026, Kyndryl announced the immediate departure of its CFO and General Counsel, indicating significant issues with internal controls and financial reporting that could undermine investor confidence.
- Stock Price Plunge: Following the announcement of the lawsuit, Kyndryl's stock price plummeted from $23.49 on February 6, 2026, to $10.59, a decline of approximately 55%, reflecting severe market concerns regarding the company's financial health.
- Investor Action Required: Investors must apply by April 13, 2026, to be appointed as lead plaintiffs, which allows them to represent other investors in the lawsuit and influence key decisions regarding litigation strategy and settlement.
See More
Kyndryl Recognized as Leader in Mainframe Modernization
- Market Leadership: Kyndryl has been recognized as a Leader in the IDC MarketScape 2025-2026 Worldwide Mainframe Modernization Infrastructure Solutions assessment, highlighting its competitive strength and influence in the mainframe services market.
- Enhanced Technical Capabilities: The report notes that Kyndryl employs approximately 7,000 mainframe specialists across 51 countries, enabling comprehensive mainframe infrastructure operations, planning, and implementation capabilities that help clients maximize the value of their data and workloads.
- AI Integration Advantage: By leveraging AI-driven capabilities like Kyndryl Bridge, Kyndryl has improved its ability to deliver mainframe services while preparing customers to take advantage of a new generation of AI mainframe functionalities, thereby enhancing operational efficiency and innovation potential.
- Customer Demand Response: As enterprises prioritize mainframe modernization to improve data access and address critical skills gaps, Kyndryl's services effectively meet the urgent market demand for efficient and intelligent mainframe solutions, further solidifying its market position.
See More
Kyndryl Faces Class Action Lawsuit
- Class Action Initiated: Kyndryl Holdings, Inc. (NYSE: KD) is facing a class action lawsuit due to significant misstatements in financial reports issued between August 7, 2024, and February 9, 2026, with investors required to file lead plaintiff motions by April 13, 2026, highlighting severe issues in the company's financial transparency.
- Delayed Financial Reporting: On February 9, 2026, Kyndryl filed a Notification of Late Filing, indicating its inability to timely submit the 10-Q report for the quarter ended December 31, 2025, which resulted in a 55% drop in stock price, reflecting strong market concerns regarding its financial health.
- Internal Control Deficiencies: The lawsuit alleges that Kyndryl has significant deficiencies in internal controls, failing to manage financial reporting effectively, and anticipates reporting material weaknesses for the fiscal year 2025 and the first two quarters of 2026, potentially undermining investor confidence in the company's future.
- Executive Departures: Kyndryl's Chief Financial Officer David Wyshner and General Counsel Edward Sebold have departed immediately, alongside Senior Vice President and Global Controller Vineet Khurana transitioning to a different role, raising further concerns about the company's governance structure and stability.
See More
Kyndryl Faces Class Action Lawsuit, Shares Plunge 55%
- Class Action Filed: Berger Montague PC has initiated a class action lawsuit against Kyndryl Holdings on behalf of investors who acquired securities between August 7, 2024, and February 9, 2026, highlighting significant investor concerns regarding the company's financial transparency.
- Misstatement Allegations: The complaint alleges that Kyndryl's financial statements during the class period were materially misstated and that the company lacked adequate internal controls, resulting in its inability to timely file its 10-Q report for the quarter ending December 31, 2025, which could impact future compliance.
- Stock Price Plunge: Following the revelation of material weaknesses in internal controls and an SEC investigation on February 9, 2026, Kyndryl's shares plummeted by 55%, causing substantial losses for investors and indicating a severe erosion of market confidence in the company's governance.
- Investor Rights Protection: Investors must seek to be appointed as lead plaintiffs by April 13, 2026, emphasizing the importance of corporate governance and financial transparency, which may influence future investment decisions and market confidence.
See More
Kyndryl Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Kyndryl Holdings, Inc. (NYSE: KD) is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with plaintiffs being investors who purchased securities between August 7, 2024, and February 9, 2025, claiming misrepresentations regarding the company's internal controls.
- Investor Rights: Affected investors can apply to serve as lead plaintiff by April 13, 2026, although they can still share in any recovery without being the lead, highlighting the legal system's role in protecting investor rights.
- Law Firm's Role: Bernstein Liebhard LLP, representing the plaintiffs, has recovered over $3.5 billion for clients since 1993, showcasing its extensive experience and success in class action litigation, which enhances investor confidence in their representation.
- Fee Structure: All legal representation is on a contingency fee basis, meaning investors incur no fees or expenses, which reduces the financial burden on investors seeking legal recourse and encourages more victims to pursue justice.
See More
Kyndryl Faces Securities Class Action Lawsuit
- Lawsuit Deadline: ClaimsFiler reminds Kyndryl investors that those who purchased shares between August 7, 2024, and February 9, 2026, must file lead plaintiff applications by April 13, 2026, to protect their rights in the class action lawsuit.
- Disclosure Violations: Kyndryl and certain executives are accused of failing to disclose material information during the class period, violating federal securities laws, which could lead to significant financial losses for investors.
- Financial Reporting Delay: On February 9, 2026, Kyndryl announced it would be unable to timely file its Form 10-Q for the quarter ended December 31, 2025, and anticipates reporting material weaknesses in internal controls, impacting financial transparency.
- Stock Price Plunge: Following this news, Kyndryl's stock price plummeted by $12.90, or 55%, closing at $10.59 on February 9, 2026, indicating severe market concerns regarding the company's financial health.
See More
Kyndryl Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: A class action lawsuit has been filed on behalf of investors who purchased Kyndryl securities between August 7, 2024, and February 9, 2026, alleging that the company's financial statements were materially misstated and lacked adequate internal controls, resulting in the inability to timely file the quarterly report for December 31, 2025.
- Executive Departures: On February 9, 2026, Kyndryl announced the immediate departure of its CFO and General Counsel, indicating significant issues with internal controls and financial reporting that could undermine investor confidence.
- Stock Price Plunge: Following the announcement of the lawsuit, Kyndryl's stock price plummeted from $23.49 on February 6, 2026, to $10.59, a decline of approximately 55%, reflecting severe market concerns regarding the company's financial health.
- Investor Action Required: Investors must apply by April 13, 2026, to be appointed as lead plaintiffs, which allows them to represent other investors in the lawsuit and influence key decisions regarding litigation strategy and settlement.
See More
