Kyndryl Securities Class Action Reminder
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy KD?
Source: Globenewswire
- Class Action Notice: Rosen Law Firm reminds investors who purchased Kyndryl securities between August 7, 2024, and February 9, 2026, to apply as lead plaintiffs by April 13, 2026, to participate in the filed class action without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Kyndryl made materially false statements during the class period regarding its financial statements and internal controls, which led to the inability to timely file its Quarterly Report for the quarter ending December 31, 2025, resulting in investor losses.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest settlement against a Chinese company, ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its expertise and success in this field.
- Investor Selection Advice: Investors are advised to carefully choose qualified counsel with a proven track record, avoiding firms that merely act as intermediaries, to ensure effective legal support and potential compensation in the class action.
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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: 12.790
Low
28.00
Averages
33.25
High
40.00
Current: 12.790
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 Notice: Rosen Law Firm reminds investors who purchased Kyndryl securities between August 7, 2024, and February 9, 2026, to apply as lead plaintiffs by April 13, 2026, to participate in the filed class action without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Kyndryl made materially false statements during the class period regarding its financial statements and internal controls, which led to the inability to timely file its Quarterly Report for the quarter ending December 31, 2025, resulting in investor losses.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest settlement against a Chinese company, ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its expertise and success in this field.
- Investor Selection Advice: Investors are advised to carefully choose qualified counsel with a proven track record, avoiding firms that merely act as intermediaries, to ensure effective legal support and potential compensation in the class action.
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- Executive Departures: On February 9, 2026, Kyndryl announced the immediate departure of its CFO and General Counsel, raising significant concerns among investors regarding the company's governance and financial stability, which may impact future financing capabilities.
- Delayed Financial Reporting: The company failed to timely file its quarterly report for Q4 2025, indicating major deficiencies in internal controls, with expectations to report material weaknesses that could further erode investor confidence.
- Stock Price Plunge: Following the announcement, Kyndryl's stock price plummeted by $12.90, or 54.9%, closing at $10.59 per share, directly resulting in investor losses and reflecting extreme market anxiety about the company's financial health.
- Class Action Lawsuit Initiation: Investors are reminded to file lead plaintiff motions by April 13, 2026, alleging that the company made materially false statements in its financial reports, potentially exposing Kyndryl to greater legal and financial risks.
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- Kyndryl Lawsuit Overview: Shareholders of Kyndryl Holdings, Inc. who suffered losses between August 7, 2024, and February 9, 2026, are reminded to file a lead plaintiff motion by April 13, 2026, due to significant misstatements in the company's financial reports.
- Internal Control Deficiencies: The lawsuit alleges that Kyndryl had inadequate internal controls, which resulted in the inability to timely file its Quarterly Report for the quarter ended December 31, 2025, raising serious concerns about the company's financial transparency and compliance, potentially undermining investor confidence.
- PayPal Lawsuit Overview: Shareholders of PayPal Holdings, Inc. who experienced losses from February 25, 2025, to February 2, 2026, are also reminded to submit a lead plaintiff motion by April 20, 2026, due to the company's failure to effectively execute its branded checkout initiatives.
- Undisclosed Competitive Concerns: The lawsuit claims that PayPal did not adequately disclose challenges in its competitive landscape, leading to misleading positive statements about its business prospects, which could adversely affect shareholders' investment decisions.
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- Financial Control Failures: Kyndryl's amended reports filed on February 17, 2026, revealed ineffective internal controls over financial reporting as of March, June, and September 2025, leading to a dramatic 55% drop in share price on February 9, 2026, eroding investor confidence significantly.
- Executive Departures: The immediate resignations of CFO David Wyshner and General Counsel Edward Sebold on February 5 raised concerns about the company's governance, as senior finance executives failed to establish an appropriate tone at the top, further destabilizing investor trust.
- Increased SEC Scrutiny: Kyndryl disclosed that its Audit Committee is reviewing cash management practices and related disclosures, coupled with document requests from the SEC, indicating heightened regulatory pressure and potential legal ramifications for the company.
- Class Action Lawsuit Initiated: A securities class action lawsuit has been triggered by the stock price collapse, representing investors who purchased Kyndryl securities between August 7, 2024, and February 9, 2026, which could result in substantial financial liabilities for the company.
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- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Kyndryl, alleging securities fraud and other unlawful business practices by the company and certain officers, with investors needing to apply as Lead Plaintiff by April 13, 2026, highlighting significant legal risks for the firm.
- Delayed Financial Reporting: On February 9, 2026, Kyndryl filed a Notification of Late Filing with the SEC, indicating its inability to submit the Quarterly Report for the period ending December 31, 2025 on time, while also revealing an ongoing SEC investigation into its financial reporting, which could undermine investor confidence.
- Executive Departures: On the same day, Kyndryl announced the immediate departures of CFO David Wyshner and General Counsel Edward Sebold, along with a role change for Senior VP and Global Controller Vineet Khurana, creating uncertainty around the company's governance and strategic direction.
- Stock Price Plunge: Following these announcements, Kyndryl's stock price plummeted by $12.90, or 55%, closing at $10.59 per share on February 9, 2026, reflecting a pessimistic outlook from the market regarding the company's future prospects, which may impact its financing capabilities and competitive position.
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- Stock Price Plunge: Kyndryl's shares dropped $12.90, or 55%, on February 9, 2026, after the company announced it would not timely file its quarterly report, resulting in over $3 billion in market capitalization loss in a single day, reflecting severe market concerns about the company's financial transparency.
- Internal Control Weaknesses: The company disclosed significant weaknesses in its internal controls, particularly regarding information communication and 'tone at the top', which are expected to impact financial reporting for the fiscal year ending March 31, 2025, potentially undermining investor confidence in corporate governance.
- Executive Departures: Kyndryl announced the departure of key executives Wyshner and Sebold on February 5, 2026, along with the comptroller Khurana stepping down to another position, which may further exacerbate market uncertainty regarding the company's future direction.
- Legal Investigation: Hagens Berman is investigating whether Kyndryl intentionally misled investors about its cash management practices, and if substantiated, this could lead to more severe legal repercussions for the company.
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