Kyndryl Faces Securities Fraud Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy KD?
Source: Businesswire
- Lawsuit Background: Glancy Prongay Wolke & Rotter LLP has announced a securities fraud class action lawsuit against Kyndryl Holdings, Inc., covering investors who purchased securities between August 7, 2024, and February 9, 2026, with a deadline for lead plaintiff motions set for April 13, 2026.
- Executive Departures Impact: On February 9, 2026, Kyndryl announced the immediate departure of its CFO and General Counsel, stating it would be unable to timely file its quarterly report, indicating significant deficiencies in internal controls that could undermine the effectiveness of financial reporting.
- Stock Price Plunge: Following this news, Kyndryl's stock price plummeted by $12.90, or 54.9%, closing at $10.59 per share on February 9, 2026, which severely harmed investor interests.
- False Statement Allegations: The lawsuit alleges that Kyndryl made materially false and misleading statements throughout the class period, failing to disclose significant errors in its financial statements and inadequate internal controls, leading to investor misjudgment regarding the company's prospects.
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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: 11.340
Low
28.00
Averages
33.25
High
40.00
Current: 11.340
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 Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Glancy Prongay Wolke & Rotter LLP has announced a securities fraud class action lawsuit against Kyndryl Holdings, Inc., covering investors who purchased securities between August 7, 2024, and February 9, 2026, with a deadline for lead plaintiff motions set for April 13, 2026.
- Executive Departures Impact: On February 9, 2026, Kyndryl announced the immediate departure of its CFO and General Counsel, stating it would be unable to timely file its quarterly report, indicating significant deficiencies in internal controls that could undermine the effectiveness of financial reporting.
- Stock Price Plunge: Following this news, Kyndryl's stock price plummeted by $12.90, or 54.9%, closing at $10.59 per share on February 9, 2026, which severely harmed investor interests.
- False Statement Allegations: The lawsuit alleges that Kyndryl made materially false and misleading statements throughout the class period, failing to disclose significant errors in its financial statements and inadequate internal controls, leading to investor misjudgment regarding the company's prospects.
See More
Top Mid-Cap Stocks with Largest YTD Losses in 2026
- Kyndryl Holdings Losses: Kyndryl Holdings (KD) leads the list with a YTD performance of -57.30% and a Quant Rating of Strong Sell 1.36, indicating significant market vulnerability that may undermine investor confidence.
- Unity Software Decline: Unity Software (U) follows closely with a YTD performance of -55.51% and a Quant Rating of Hold 2.74, suggesting that while there is some market demand, its profitability remains unenhanced.
- Hims & Hers Health Struggles: Hims & Hers Health (HIMS) shows a YTD performance of -51.34% with a Quant Rating of Strong Sell 1.24, reflecting challenges in the competitive health tech market that could lead to further capital outflows.
- Other Mid-Cap Losses: Core Scientific (CORZR) and Doximity (DOCS) report YTD performances of -46.15% and -44.20% respectively, highlighting the overall pressure faced by mid-cap software stocks, which may affect investor sentiment across the sector.
See More
Kyndryl Faces Class Action Lawsuit Allegations
- Class Action Initiation: Purchasers of Kyndryl Holdings, Inc. securities between August 7, 2024, and February 9, 2026, have until April 13, 2026, to seek lead plaintiff status in a class action lawsuit alleging violations of the Securities Exchange Act of 1934 by the company and its executives.
- Financial Reporting Issues: The lawsuit claims that Kyndryl's financial statements during the class period were materially misstated, and 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.
- Executive Departures: During the class period, Kyndryl's CFO David Wyshner and General Counsel Edward Sebold departed immediately, along with Senior VP and Global Controller Vineet Khurana transitioning to a different role, raising concerns about the company's governance and stability.
- Stock Price Plummet: Following the lawsuit announcement, Kyndryl's stock price fell by 55%, indicating severe market concerns regarding the company's financial health and potentially diminishing investor confidence in its future prospects.
See More
Kyndryl Under Investigation for Potential Securities Law Violations
- Investigation Background: Bleichmar Fonti & Auld LLP has announced an investigation into Kyndryl Holdings, Inc. for potential violations of federal securities laws, focusing on whether the company misrepresented its cash management practices for FY2025 and the first three quarters of FY2026, which could undermine investor confidence.
- Stock Price Plunge: On February 9, 2026, Kyndryl announced a delay in releasing its fiscal Q3 2026 financial statement pending an accounting review due to SEC document requests, resulting in a staggering over 52% drop in stock price during trading that day, significantly impacting the company's market capitalization.
- Executive Departures: Following the financial review announcement, Kyndryl also revealed the immediate departures of its CFO and General Counsel, which may exacerbate market concerns regarding the company's governance and financial transparency.
- Legal Options for Investors: Investors are encouraged to visit the BFA website for more information, indicating that the company may face collective litigation risks, and investors can seek legal support through the firm to enhance potential compensation opportunities.
See More
Kyndryl Faces Governance Crisis and Downgraded Financial Outlook
- Collaborative Opportunity: Kyndryl's partnership with Yamaguchi Financial Group aims to launch an integrated core banking platform by 2029, which is expected to enhance IT management efficiency and reduce operational costs, showcasing the company's technological strength in the financial services sector.
- Governance Crisis: The company's Audit Committee is reviewing cash management and internal controls due to SEC investigation requests, exacerbated by the sudden departures of the CFO and General Counsel, leading to increased uncertainty.
- Financial Outlook Downgrade: Kyndryl has lowered its fiscal 2026 adjusted pretax income guidance from $725 million to a range of $575 million to $600 million, with free cash flow expectations also significantly reduced, indicating financial pressure and declining market confidence.
- Technical Analysis: The stock is currently trading 47.5% below its 20-day and 57.3% below its 100-day simple moving averages, indicating significant short-term weakness, with a 72.7% decline over the past 12 months, reflecting market concerns about its future performance.
See More
Kyndryl Holdings Under Investigation as Shares Plunge 55%
- Stock Price Plunge: Kyndryl Holdings experienced a dramatic drop of over 55% in its share price during morning trading on February 9, 2026, following the announcement of its CFO's departure amid an accounting review, indicating severe market concerns regarding the company's financial health.
- Legal Investigation Initiated: DJS Law Group has launched an investigation into whether Kyndryl issued misleading statements or failed to disclose critical information to investors, which could lead to significant losses for shareholders, highlighting potential issues in corporate governance and transparency.
- Investor Losses: The company's failure to timely disclose its financial status may have resulted in substantial losses for many shareholders, prompting DJS Law Group to invite affected investors to participate in litigation aimed at protecting investor rights through legal channels.
- Market Reaction: According to Barron's, Kyndryl's earnings performance fell short of expectations, exacerbating investor anxiety and further undermining market confidence in the company and its future growth prospects.
See More
Kyndryl Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Glancy Prongay Wolke & Rotter LLP has announced a securities fraud class action lawsuit against Kyndryl Holdings, Inc., covering investors who purchased securities between August 7, 2024, and February 9, 2026, with a deadline for lead plaintiff motions set for April 13, 2026.
- Executive Departures Impact: On February 9, 2026, Kyndryl announced the immediate departure of its CFO and General Counsel, stating it would be unable to timely file its quarterly report, indicating significant deficiencies in internal controls that could undermine the effectiveness of financial reporting.
- Stock Price Plunge: Following this news, Kyndryl's stock price plummeted by $12.90, or 54.9%, closing at $10.59 per share on February 9, 2026, which severely harmed investor interests.
- False Statement Allegations: The lawsuit alleges that Kyndryl made materially false and misleading statements throughout the class period, failing to disclose significant errors in its financial statements and inadequate internal controls, leading to investor misjudgment regarding the company's prospects.
See More
Top Mid-Cap Stocks with Largest YTD Losses in 2026
- Kyndryl Holdings Losses: Kyndryl Holdings (KD) leads the list with a YTD performance of -57.30% and a Quant Rating of Strong Sell 1.36, indicating significant market vulnerability that may undermine investor confidence.
- Unity Software Decline: Unity Software (U) follows closely with a YTD performance of -55.51% and a Quant Rating of Hold 2.74, suggesting that while there is some market demand, its profitability remains unenhanced.
- Hims & Hers Health Struggles: Hims & Hers Health (HIMS) shows a YTD performance of -51.34% with a Quant Rating of Strong Sell 1.24, reflecting challenges in the competitive health tech market that could lead to further capital outflows.
- Other Mid-Cap Losses: Core Scientific (CORZR) and Doximity (DOCS) report YTD performances of -46.15% and -44.20% respectively, highlighting the overall pressure faced by mid-cap software stocks, which may affect investor sentiment across the sector.
See More
Kyndryl Faces Class Action Lawsuit Allegations
- Class Action Initiation: Purchasers of Kyndryl Holdings, Inc. securities between August 7, 2024, and February 9, 2026, have until April 13, 2026, to seek lead plaintiff status in a class action lawsuit alleging violations of the Securities Exchange Act of 1934 by the company and its executives.
- Financial Reporting Issues: The lawsuit claims that Kyndryl's financial statements during the class period were materially misstated, and 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.
- Executive Departures: During the class period, Kyndryl's CFO David Wyshner and General Counsel Edward Sebold departed immediately, along with Senior VP and Global Controller Vineet Khurana transitioning to a different role, raising concerns about the company's governance and stability.
- Stock Price Plummet: Following the lawsuit announcement, Kyndryl's stock price fell by 55%, indicating severe market concerns regarding the company's financial health and potentially diminishing investor confidence in its future prospects.
See More
Kyndryl Under Investigation for Potential Securities Law Violations
- Investigation Background: Bleichmar Fonti & Auld LLP has announced an investigation into Kyndryl Holdings, Inc. for potential violations of federal securities laws, focusing on whether the company misrepresented its cash management practices for FY2025 and the first three quarters of FY2026, which could undermine investor confidence.
- Stock Price Plunge: On February 9, 2026, Kyndryl announced a delay in releasing its fiscal Q3 2026 financial statement pending an accounting review due to SEC document requests, resulting in a staggering over 52% drop in stock price during trading that day, significantly impacting the company's market capitalization.
- Executive Departures: Following the financial review announcement, Kyndryl also revealed the immediate departures of its CFO and General Counsel, which may exacerbate market concerns regarding the company's governance and financial transparency.
- Legal Options for Investors: Investors are encouraged to visit the BFA website for more information, indicating that the company may face collective litigation risks, and investors can seek legal support through the firm to enhance potential compensation opportunities.
See More
Kyndryl Faces Governance Crisis and Downgraded Financial Outlook
- Collaborative Opportunity: Kyndryl's partnership with Yamaguchi Financial Group aims to launch an integrated core banking platform by 2029, which is expected to enhance IT management efficiency and reduce operational costs, showcasing the company's technological strength in the financial services sector.
- Governance Crisis: The company's Audit Committee is reviewing cash management and internal controls due to SEC investigation requests, exacerbated by the sudden departures of the CFO and General Counsel, leading to increased uncertainty.
- Financial Outlook Downgrade: Kyndryl has lowered its fiscal 2026 adjusted pretax income guidance from $725 million to a range of $575 million to $600 million, with free cash flow expectations also significantly reduced, indicating financial pressure and declining market confidence.
- Technical Analysis: The stock is currently trading 47.5% below its 20-day and 57.3% below its 100-day simple moving averages, indicating significant short-term weakness, with a 72.7% decline over the past 12 months, reflecting market concerns about its future performance.
See More
Kyndryl Holdings Under Investigation as Shares Plunge 55%
- Stock Price Plunge: Kyndryl Holdings experienced a dramatic drop of over 55% in its share price during morning trading on February 9, 2026, following the announcement of its CFO's departure amid an accounting review, indicating severe market concerns regarding the company's financial health.
- Legal Investigation Initiated: DJS Law Group has launched an investigation into whether Kyndryl issued misleading statements or failed to disclose critical information to investors, which could lead to significant losses for shareholders, highlighting potential issues in corporate governance and transparency.
- Investor Losses: The company's failure to timely disclose its financial status may have resulted in substantial losses for many shareholders, prompting DJS Law Group to invite affected investors to participate in litigation aimed at protecting investor rights through legal channels.
- Market Reaction: According to Barron's, Kyndryl's earnings performance fell short of expectations, exacerbating investor anxiety and further undermining market confidence in the company and its future growth prospects.
See More
