Class Action Lawsuit Filed Against Kyndryl Holdings, Inc.
NEW YORK, NY — February 14, 2026 — Leads & Copy — A class action lawsuit has been filed against Kyndryl Holdings, Inc. (NYSE: KD) on behalf of investors who purchased or acquired Kyndryl securities between August 7, 2024, and February 9, 2026.
Kaplan Fox & Kilsheimer LLP announced the lawsuit. Investors who have suffered losses can contact Kaplan Fox to learn more about the lead plaintiff process. The deadline to move the court to serve as a lead plaintiff is April 13, 2026.
Kyndryl filed a Notification of Late Filing with the SEC on February 9, 2026, reporting its inability to timely file its quarterly report on Form 10-Q for the quarter ended December 31, 2025. The company anticipates reporting material weaknesses regarding 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.
Kyndryl also disclosed that following the Company’s receipt of voluntary document requests from the SEC, the Company is “reviewing its cash management practices, related disclosures (including regarding the drivers of the Company’s adjusted free cash flow metric), the efficacy of the Company’s internal control over financial reporting, and certain other matters[.]”
The company also announced leadership changes, including the immediate departures of the Chief Financial Officer and the General Counsel, and that the Global Controller had stepped down and assumed a different position.
On February 12, 2026, the price of Kyndryl stock fell $12.90 per share, or 55%, to close at $10.59 per share.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that Kyndryl’s financial statements issued during the Class Period were materially misstated. It also alleges that Kyndryl lacked adequate internal controls and at times materially understated issues with its internal controls.
As a result, the complaint states Kyndryl was unable to timely file its Quarterly Report on Form 10-Q for the quarter ended December 31, 2025, and the defendants’ statements about Kyndryl’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
Kaplan Fox & Kilsheimer LLP is a national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey.
Source: Kyndryl
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