Kyndryl Holdings Faces Class Action Lawsuit
A class action lawsuit has been filed against IT infrastructure services provider Kyndryl Holdings, Inc. on behalf of investors. The lawsuit alleges securities violations, with a lead plaintiff deadline set for April 13, 2026.
- The class action lawsuit covers investors who purchased Kyndryl securities between August 7, 2024, and February 9, 2026. The legal proceedings are taking place in the U.S. District Court for the Eastern District of New York. - Allegations against Kyndryl include making false or misleading statements about its financial health and failing to disclose material weaknesses in its internal controls over financial reporting. The lawsuit also claims that the company's financial statements during the class period were materially misstated. - On February 9, 2026, Kyndryl announced it would delay filing its quarterly report and disclosed an internal accounting review related to its cash management practices, following document requests from the U.S. Securities and Exchange Commission (SEC). - Concurrent with the accounting review announcement, Kyndryl's Chief Financial Officer and General Counsel both departed the company, effective immediately. - The news on February 9, 2026, triggered a more than 50% drop in Kyndryl's stock price, closing at $10.59 per share. - Kyndryl was formed in November 2021 as a spin-off of IBM's managed infrastructure services business. It is the world's largest IT infrastructure services provider, serving 75% of the Fortune 100 companies. - Prior to the lawsuit-related disclosures, Kyndryl had reported revenues of $3.9 billion for the quarter ending December 31, 2025, a 3% year-over-year increase. The company had also been working on repositioning toward higher-margin services like consulting, cloud, and AI.
