A securities class action has been filed against Kyndryl Holdings, Inc. (KD) on behalf of persons or entities who purchased or otherwise acquired publicly traded Kyndryl securities between August 7, 2024 through February 9, 2026. This case has been filed in the USDC – EDNY.
On February 9, 2026, Kyndryl disclosed in a filing with the U.S. Securities and Exchange Commission that its Audit Committee is reviewing the Company’s cash management practices, related disclosures (including regarding the drivers of the Company’s adjusted free cash flow metric), and the efficacy of its internal control over financial reporting following the Company’s receipt of voluntary document requests from the SEC’s Division of Enforcement.
Kyndryl further disclosed that it expects to report material weaknesses in internal control over financial reporting for multiple reporting periods. The Company also stated that its previously issued assessment of internal control over financial reporting and its independent auditor’s opinion included in its Annual Report on Form 10-K for the fiscal year ended March 31, 2025 should no longer be relied upon.
In addition, Kyndryl announced the immediate departures of its Chief Financial Officer and General Counsel and filed a Form NT 10-Q indicating that it would delay the filing of its Quarterly Report on Form 10-Q.