Kyndryl (US:KD) Globenewswire·2026-03-31 23:34Core 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][4]. Group 1: Legal Action Details - The new litigation, titled 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 lead plaintiff deadline for this expanded class action is set for April 13, 2026, which remains unchanged despite the new allegations [5]. Group 2: Allegations Against Kyndryl - The litigation claims 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][7]. - The complaint highlights that on August 4, 2025, Kyndryl missed revenue and cash flow estimates, resulting in a 21% drop in stock price, yet management continued to assure investors about the financial condition [7]. - Following a February 9, 2026 announcement regarding a voluntary SEC document request and the immediate departure of the CFO and General Counsel, Kyndryl's stock plummeted 55%, from $23.49 to $10.59 per share [4][7].