Kyndryl Holdings Faces Investor Class Action Lawsuit

- The lawsuit alleges that Kyndryl made false or misleading statements and failed to disclose material information regarding its financial statements and internal controls. The class period for investors covered is from August 7, 2024, to February 9, 2026. - On February 9, 2026, Kyndryl announced it would delay the filing of its quarterly report for the period ending December 31, 2025. The company also disclosed an internal review of its cash management practices and that it anticipates reporting "material weaknesses" in its internal controls. - Following the announcement, Kyndryl's stock price dropped by over 50%. The company's Chief Financial Officer, David Wyshner, and General Counsel, Edward Sebold, also departed effective immediately. - Kyndryl was formed in November 2021 as a spin-off of IBM's IT infrastructure services business. At the time of the separation, IBM shareholders received one Kyndryl share for every five IBM shares they owned. - The company is the world's largest IT infrastructure services provider, with approximately 90,000 employees and operations in over 60 countries. Upon its launch as an independent company, it had an annual revenue of $19 billion. - For the fiscal year 2025, which ended March 31, 2025, Kyndryl reported revenue of $15.1 billion and a net income of $252 million. - The lawsuit was filed in the U.S. District Court for the Eastern District of New York. Several law firms are representing investors in the case.