Kyndryl (US:KD) TMX Newsfile·2026-02-11 22:43Core Viewpoint - A class action lawsuit has been filed against Kyndryl Holdings, Inc. and certain senior executives for securities fraud following significant stock drops due to potential violations of federal securities laws [1][3]. Company Overview - Kyndryl is a provider of enterprise technology services, offering advisory, implementation, and managed service capabilities to customers in over 60 countries. It is recognized as the world's largest IT infrastructure services provider [4]. Allegations - The lawsuit alleges that Kyndryl misrepresented its cash management practices, including the drivers of its adjusted free cash flow metric and the effectiveness of its internal controls over financial reporting for FY2025 and the first three quarters of FY2026 [5]. Stock Performance - On February 9, 2026, Kyndryl announced a delay in releasing its fiscal Q3 2026 financial statement due to an accounting review of its cash management practices, which led to the immediate departures of its CFO and General Counsel. This announcement resulted in a stock price drop of $12.90 per share, or 55%, from a closing price of $23.49 on February 8, 2026, to $10.59 on February 9, 2026 [6][7]. Legal Proceedings - Investors have until April 13, 2026, to request to be appointed to lead the case, which is pending in the U.S. District Court for the Eastern District of New York under the caption Brander v. Kyndryl Holdings, Inc., et al., No. 1:26-cv-00782 [3].