Kyndryl (US:KD) Globenewswire·2026-03-20 01:31Core Viewpoint - An expanded securities class action has been filed against Kyndryl Holdings, Inc., alleging issues with the company's free cash flow reporting and expanding the class of affected investors [1][3]. Group 1: Allegations and Legal Actions - The new litigation, Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds v. Kyndryl Holdings, Inc., seeks to represent all individuals and entities who purchased Kyndryl securities between August 1, 2024, and February 6, 2026 [3]. - The expanded complaint alleges that Kyndryl's reported free cash flow was artificially inflated due to undisclosed and unsustainable cash management practices, rather than reflecting genuine operational strength [4][8]. - The initial complaint focused on the failure to timely file financial reports and deficient internal controls, while the expanded allegations highlight the misleading nature of Kyndryl's financial health [5]. Group 2: Financial Impact and Market Reaction - The complaint notes that the truth about Kyndryl's financial situation began to emerge on August 4, 2025, when the company missed revenue and cash flow estimates, resulting in a 21% drop in stock price [8]. - Following the announcement of a voluntary document request from the SEC regarding cash management practices and the immediate departure of the CFO and General Counsel on February 9, 2026, Kyndryl's stock plummeted 55%, falling from $23.49 to $10.59 per share [8].