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

San Francisco, California--(Newsfile Corp. - February 11, 2026) - A securities class action lawsuit has been filed against Kyndryl Holdings, Inc. (NYSE: KD) and seeks to represent investors who purchased or otherwise acquired Kyndryl securities between August 7, 2024 and February 9, 2026.

The lawsuit follows the sharp selloff in Kyndryl shares (-$12.90, -55%) on February 9, 2026, after the company announced that it would not timely file its quarterly report for the quarter ended December 31, 2025, material internal control weaknesses including "tone at the top" communications, senior executive departures, and an SEC document request.

These developments and severe market reaction have prompted national shareholder rights law firm Hagens Berman to continue its investigation into whether Kyndryl may have violated the federal securities. The firm urges Kyndryl investors who suffered significant losses to contact the firm now to discuss their rights.

Class Period: Aug. 7, 2024 – Feb. 9, 2026
Lead Plaintiff Deadline: Apr. 13, 2026
Visit: www.hbsslaw.com/investor-fraud/kd
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844-916-0895

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

In the past, infrastructure services company Kyndryl has emphasized "strong conversion of our earnings to free cash flow" and assured investors that its internal control over financial reporting is effective.

The complaint alleges that Kyndryl made false and misleading statements while withholding crucial information from investors. More specifically, the lawsuit alleges that Kyndryl's financial statements issued during the Class Period were materially misstated. In addition, it claims that the company lacked adequate internal controls and understated problems with its internal controls.

On February 9, 2026, Kyndryl made four startling disclosures.

First, the company notified investors that it would not timely file its quarterly report because Kyndryl's 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[.]"

Second, Kyndryl disclosed that it anticipated reporting material weaknesses in its "internal control over financial reporting for the period covered in the quarterly report, as well as for the full fiscal year ended March 31, 2025, and the first two fiscal quarters of fiscal year 2026[.]" The company further specified that such weaknesses are expected to include controls related to information and communication and "tone at the top."