Johnson Fistel, PLLP Investigates Kyndryl Holdings, Inc. (KD) for Potential Violations of Federal Securities Laws

Core Insights - Kyndryl Holdings, Inc. is under investigation by Johnson Fistel, PLLP regarding potential compliance issues with federal securities laws, focusing on investor losses and recoverability [1][3]. Financial Reporting and Internal Controls - On February 9, 2026, Kyndryl disclosed that its Audit Committee is reviewing cash management practices and related disclosures, particularly concerning the adjusted free cash flow metric, following requests from the SEC's Division of Enforcement [3]. - The company anticipates reporting material weaknesses in internal control over financial reporting for multiple periods and stated that its previous assessments and independent auditor's opinions should no longer be relied upon [4]. Executive Changes and Stock Impact - Kyndryl announced the immediate departures of its Chief Financial Officer and General Counsel, and indicated a delay in filing its Quarterly Report on Form 10-Q [5]. - Following these disclosures, Kyndryl's stock price fell approximately 40% in premarket trading on February 9, 2026 [5].