Kyndryl (US:KD) TMX Newsfile·2026-02-22 12:45Core Viewpoint - Kyndryl Holdings, Inc. is facing significant scrutiny due to internal control weaknesses and cash management practices, leading to a substantial decline in stock price and potential legal claims from investors [4][5][6]. Group 1: Company Disclosures - On February 9, 2026, Kyndryl disclosed that its Audit Committee is reviewing cash management practices and related disclosures following voluntary document requests from the SEC's Division of Enforcement [4]. - Kyndryl expects to report material weaknesses in internal control over financial reporting for multiple reporting periods, indicating that previous assessments and auditor opinions should no longer be relied upon [5]. - The company announced the immediate departures of its Chief Financial Officer and General Counsel, and it will delay the filing of its Quarterly Report on Form 10-Q [6]. Group 2: Market Impact - Following the disclosures regarding internal control issues and management changes, Kyndryl's stock price declined approximately 50% on February 9, 2026 [6]. Group 3: Legal Implications - Faruqi & Faruqi, LLP is investigating potential claims against Kyndryl for investors who suffered significant losses, encouraging affected investors to discuss their legal rights [2][3].