Kyndryl (US:KD) Globenewswire·2026-02-09 20:35Core Viewpoint - Kyndryl Holdings, Inc. experienced a significant drop in share price, nearly 57%, following the announcement of delays in filing its quarterly report and the immediate departure of key executives, raising concerns about the company's financial practices and internal controls [1][5]. Group 1: Company Developments - Kyndryl announced it would not timely file its quarterly report for the quarter ended December 31, 2025, due to an ongoing review by its Audit Committee regarding cash management practices and internal controls [4]. - The company revealed it received document requests from the SEC's Division of Enforcement related to the matters under review by the Audit Committee [4]. - The CFO David Wyshner and General Counsel Edward Sebold departed effective February 5, 2026, alongside the comptroller Vineet Khurana, who stepped down while assuming another position [5]. Group 2: Market Reaction - Following the announcements, Kyndryl's share price fell nearly 57% in a single trading day, resulting in a loss of over $3 billion in market capitalization [1][5]. - The severe market reaction has prompted Hagens Berman, a national shareholder rights law firm, to investigate whether Kyndryl misled investors regarding its financial statements and internal controls [2][6]. Group 3: Legal Implications - Hagens Berman is investigating the potential misleading of investors concerning Kyndryl's cash management practices, particularly in light of the company's previous emphasis on strong free cash flow conversion [3][6]. - The firm is urging Kyndryl investors who suffered significant losses to contact them to discuss their rights [2].