Kyndryl (US:KD) Globenewswire·2026-02-25 21:25Core 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 [4][6][9]. Group 1: Legal Investigation and Class Action - Faruqi & Faruqi is encouraging investors who suffered losses in Kyndryl to contact them regarding their legal rights, particularly those who purchased securities between August 7, 2024, and February 9, 2026 [1][4]. - There is an April 13, 2026 deadline for investors to seek the role of lead plaintiff in a federal securities class action against Kyndryl [4][10]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [5]. 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 [6]. - Kyndryl disclosed that it expects to report material weaknesses in internal control over financial reporting for multiple reporting periods, indicating that previous assessments should no longer be relied upon [8]. - Following disclosures regarding internal control issues and the immediate departures of key executives, Kyndryl's stock price declined approximately 50% on February 9, 2026 [9]. Group 3: Company Disclosures - On February 9, 2026, Kyndryl announced that its Audit Committee is reviewing cash management practices and related disclosures after receiving voluntary document requests from the SEC [7]. - The company filed a Form NT 10-Q indicating a delay in filing its Quarterly Report on Form 10-Q [9].