Kyndryl (US:KD) TMX Newsfile·2026-02-16 14:17Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Kyndryl Holdings, Inc. due to alleged misleading statements and internal control weaknesses that have led to significant financial losses for investors [2][4]. Group 1: Legal Investigation and Claims - The law firm is encouraging investors who suffered losses in Kyndryl between August 7, 2024, and February 9, 2026, to discuss their legal options [1]. - A federal securities class action has been filed against Kyndryl, with a deadline of April 13, 2026, for investors to seek the role of lead plaintiff [2]. - The firm has a history of recovering hundreds of millions of dollars for investors since its establishment in 1995 [3]. Group 2: Allegations Against Kyndryl - The complaint alleges that Kyndryl's financial statements during the class period were materially misstated and that the company lacked adequate internal controls [4]. - Kyndryl disclosed that it is reviewing its cash management practices and internal controls following requests from the SEC's Division of Enforcement [5]. - The company expects to report material weaknesses in its internal control over financial reporting for multiple reporting periods, indicating that previous assessments should no longer be relied upon [6]. Group 3: Impact on Kyndryl's Operations - Kyndryl announced the immediate departures of its Chief Financial Officer and General Counsel, and it filed a Form NT 10-Q to delay its Quarterly Report [7]. - Following these disclosures, Kyndryl's stock price declined approximately 50% on February 9, 2026 [7].