Kyndryl (US:KD) Businesswire·2026-02-13 17:07Core Viewpoint - A class action lawsuit has been filed against Kyndryl Holdings, Inc. for securities fraud, following significant management departures and issues with financial reporting, leading to a substantial drop in stock price [1]. Group 1: Lawsuit Details - The class action lawsuit is on behalf of shareholders who acquired Kyndryl securities between August 7, 2024, and February 9, 2026, with a deadline for filing a lead plaintiff motion set for April 13, 2026 [1]. - The lawsuit alleges that Kyndryl made materially false and misleading statements regarding its business operations and financial health during the class period [1]. - Specific allegations include that Kyndryl's financial statements were materially misstated, lacked adequate internal controls, and that the company would be unable to timely file its quarterly report [1]. Group 2: Company Developments - On February 9, 2026, Kyndryl announced the immediate departure of its CFO and General Counsel, which raised concerns about its internal controls and financial reporting practices [1]. - The company indicated it anticipates reporting material weaknesses in its internal control over financial reporting, particularly regarding communication and management practices [1]. - Following these announcements, Kyndryl's stock price fell by $12.90, or 54.9%, closing at $10.59 per share on the same day [1].