Kyndryl Holdings Sued For Securities Fraud; Investors Should Contact Block & Leviton to Recover Losses

Core Viewpoint - A securities fraud lawsuit has been filed against Kyndryl Holdings, Inc. and certain executives following a significant drop in share price due to internal accounting issues and executive departures [1][2]. Group 1: Company Issues - Kyndryl Holdings' shares fell over 50% in intraday trading on February 9, 2026, after the company announced an internal accounting review and a delay in filing its quarterly report [2]. - The internal review focuses on cash management practices, related disclosures, and internal control over financial reporting, prompted by document requests from the SEC [2]. - Kyndryl does not expect a restatement of its financials but anticipates reporting material weaknesses in internal control over financial reporting for FY25 and the first three quarters of FY26 [2]. Group 2: Lawsuit Details - The lawsuit alleges that Kyndryl made false and misleading statements regarding its financial statements, internal controls, and the timely filing of its Quarterly Report on Form 10-Q for the quarter ended December 31, 2025 [3]. - It is claimed that Kyndryl lacked adequate internal controls and materially understated issues related to them, leading to misleading statements about the company's business and prospects [3]. Group 3: Investor Information - Investors who purchased Kyndryl Holdings common stock between August 7, 2024, and February 9, 2026, may be eligible to participate in the lawsuit, regardless of whether they have sold their shares [4]. - The deadline to seek appointment as lead plaintiff is April 13, 2026, and a class has not yet been certified [5]. Group 4: Whistleblower Information - Individuals with non-public information about Kyndryl Holdings are encouraged to assist in the investigation or file a report with the SEC under the whistleblower program, potentially receiving rewards of up to 30% of any successful recovery [6]. Group 5: Legal Representation - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].