Kyndryl Holdings Faces Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy KD?
Source: Newsfilter
- Lawsuit Background: DJS Law Group reminds investors of a class action lawsuit against Kyndryl Holdings for violations of §§10(b) and 20(a) of the Securities Exchange Act, covering the trading period from August 7, 2024, to February 9, 2026, indicating serious misstatements in the company's financial reporting during this time.
- Financial Misstatement Allegations: The complaint alleges that Kyndryl's financial statements were false and misleading throughout the class period, with deficient internal controls over financial reporting, leading to investor misunderstandings about the company's financial health, which could significantly impact shareholder investment decisions.
- Shareholder Participation Opportunity: DJS Law Group encourages shareholders who purchased KD stock during the class period to contact them regarding potential lead plaintiff appointments, emphasizing that participation in recovery does not require being appointed as lead plaintiff, thus providing an opportunity for affected shareholders to recover losses.
- Legal Service Advantages: DJS Law Group focuses on enhancing investor returns through balanced counseling and aggressive advocacy, specializing in securities class actions and corporate governance litigation, aiming to provide high-value legal services that ensure litigation claims are respected and yield results.
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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.
- Class Action Initiation: Rosen Law Firm has filed a class action lawsuit against Kyndryl Holdings, Inc. for securities purchasers between August 7, 2024, and February 9, 2026, indicating potential financial losses for investors.
- Allegations of Financial Misstatements: The lawsuit alleges that Kyndryl's financial statements during the class period were materially misstated and that the company lacked adequate internal controls, leading to an inability to timely file its Quarterly Report for December 31, 2025, which undermines investor confidence.
- Compensation Mechanism: Investors participating in the lawsuit may receive compensation without any out-of-pocket costs, highlighting the contingency fee arrangement offered by Rosen Law Firm as a protective measure for investors.
- Law Firm Background: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and influence in such cases.
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- Financial Reporting Errors: Kyndryl disclosed on February 9, 2026, that its financial statements from August 7, 2024, to February 9, 2026, were materially misstated, significantly undermining investor confidence and exposing the company to potential legal liabilities.
- Internal Control Deficiencies: The company acknowledged inadequate internal controls and expects to report material weaknesses over multiple reporting periods, which not only affects its financial transparency but also raises the risk of future audit issues, increasing investor uncertainty.
- Executive Departures Impact: Kyndryl announced the immediate departures of its Chief Financial Officer and General Counsel, which may lead to further instability in the company's governance structure, thereby affecting investor confidence in its future prospects.
- Stock Price Plunge Consequences: Following these disclosures, Kyndryl's stock price plummeted approximately 50% on February 9, 2026, reflecting market concerns over the company's financial health and potentially prompting investors to pursue class action lawsuits for compensation.
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- Lawsuit Background: DJS Law Group reminds investors of a class action lawsuit against Kyndryl Holdings, Inc. (NYSE:KD) for violations of securities laws during the trading period from August 7, 2024, to February 9, 2026, indicating serious discrepancies in the company's financial reporting.
- Financial Misstatements: The complaint alleges that Kyndryl made false and misleading statements regarding its financial statements throughout the class period, with deficiencies in internal controls leading to inaccurate financial reporting, thereby undermining investor confidence and decision-making.
- Investor Action: Shareholders who suffered losses are encouraged to contact DJS Law Group to participate in the lawsuit, with the understanding that appointment as lead plaintiff is not required for recovery, providing a potential avenue for compensation for affected investors.
- Legal Team Advantage: DJS Law Group specializes in securities class actions and corporate governance litigation, boasting extensive experience and a strong client base, aiming to maximize returns for investors through aggressive legal advocacy.
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- Lawsuit Background: DJS Law Group reminds investors of a class action lawsuit against Kyndryl Holdings for violations of §§10(b) and 20(a) of the Securities Exchange Act, covering the trading period from August 7, 2024, to February 9, 2026, indicating serious misstatements in the company's financial reporting during this time.
- Financial Misstatement Allegations: The complaint alleges that Kyndryl's financial statements were false and misleading throughout the class period, with deficient internal controls over financial reporting, leading to investor misunderstandings about the company's financial health, which could significantly impact shareholder investment decisions.
- Shareholder Participation Opportunity: DJS Law Group encourages shareholders who purchased KD stock during the class period to contact them regarding potential lead plaintiff appointments, emphasizing that participation in recovery does not require being appointed as lead plaintiff, thus providing an opportunity for affected shareholders to recover losses.
- Legal Service Advantages: DJS Law Group focuses on enhancing investor returns through balanced counseling and aggressive advocacy, specializing in securities class actions and corporate governance litigation, aiming to provide high-value legal services that ensure litigation claims are respected and yield results.
See More
- Lawsuit Background: Kahn Swick & Foti LLC has notified investors that Kyndryl Holdings, Inc. is facing a class action lawsuit aimed at recovering losses for investors adversely affected by alleged securities fraud from August 7, 2024, to February 9, 2026.
- Financial Reporting Delay: On February 9, 2026, Kyndryl disclosed its inability to timely file its Form 10-Q report for the quarter ended December 31, 2025, and anticipates reporting material weaknesses in internal controls over financial reporting, potentially impacting various operational aspects of the company.
- Stock Price Plunge: Following this news, Kyndryl's shares fell by $12.90, or 55%, closing at $10.59 on February 9, 2026, reflecting significant market concerns regarding the company's financial health.
- Investor Action: Affected investors have until April 13, 2026, to request to be appointed as lead plaintiff in the lawsuit, although they do not need to serve in this capacity to share in any potential recovery.
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- Class Action Initiated: Robbins LLP has alerted all investors who purchased Kyndryl Holdings, Inc. (NYSE:KD) securities between August 7, 2024, and February 9, 2026, that a class action has been filed against the company, alleging significant misstatements in its financial reports that could lead to investor losses.
- Allegations of Financial Misstatements: The complaint claims that Kyndryl failed to disclose material misstatements in its financial statements during the class period and lacked adequate internal controls, resulting in its inability to timely file its Quarterly Report for the quarter ended December 31, 2025, undermining investor confidence in the company's financial health.
- Stock Price Plunge: Following the announcement on February 9, 2026, that Kyndryl would not be able to file its quarterly report on time, the stock price plummeted by $12.90, or 55%, closing at $10.59, indicating severe market concerns regarding the company's financial transparency.
- Executive Departures: The investigation into the financial reporting has led to the departure of Kyndryl's Chief Financial Officer and General Counsel, with the Senior Vice President and Global Controller assuming a different role, reflecting significant challenges in the company's governance structure that may impact future operations and investor trust.
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