Kyndryl (US:KD) Globenewswire·2026-02-23 13:35Core Viewpoint - Kyndryl Holdings, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims of misleading financial statements and inadequate internal controls during the specified class period [1][3]. Summary by Sections Class Action Lawsuit Details - The class action lawsuit is titled Brander v. Kyndryl Holdings, Inc., and it allows purchasers of Kyndryl securities from August 7, 2024, to February 9, 2026, to seek lead plaintiff status by April 13, 2026 [1][5]. - The lawsuit alleges that Kyndryl's financial statements were materially misstated and that the company lacked adequate internal controls, which led to an inability to timely file its Quarterly Report for the quarter ended December 31, 2025 [3][4]. Financial and Operational Implications - On February 9, 2026, Kyndryl announced it would be unable to file its Quarterly Report on Form 10-Q on time, citing a review of its cash management practices and internal controls following SEC inquiries [4]. - The company anticipates reporting material weaknesses in its internal control over financial reporting for the fiscal year ended March 31, 2025, and the first two quarters of fiscal year 2026 [4]. - Following the announcement, Kyndryl's stock price fell by 55% [4]. Company Background - Kyndryl operates as a technology services company and IT infrastructure services provider [2]. - Robbins Geller Rudman & Dowd LLP, the law firm handling the case, is recognized as a leading firm in securities fraud and shareholder rights litigation, having recovered over $916 million for investors in 2025 alone [6].