Kyndryl Holdings (KD) Files Amended Quarterly and Fiscal Year Reports Detailing Material Internal Control Weaknesses After 3 Key Executives Depart, Securities Class Action Pending- Hagens Berman
Kyndryl Holdings (KD) Files Amended Quarterly and Fiscal Year Reports Detailing Material Internal Control Weaknesses After 3 Key Executives Depart, Securities Class Action Pending- Hagens Berman |
| [20-February-2026] |
SAN FRANCISCO, Feb. 20, 2026 /PRNewswire/ -- On February 17, 2026, Kyndryl Holdings, Inc. (NYSE: KD) filed two amended quarterly reports and one amended annual report providing further detail about problems previously reported on February 9, 2026.
The recent filings reveal that "the Company's disclosure controls and procedures and internal control over financial reporting were ineffective" as of March 31, June 30, and September 30, 2025. Each specified that "senior finance executives failed to set an appropriate tone at the top[.]" In addition, Kyndryl said "there was a lack of transparency with the Company's Chief Executive Officer, the Audit Committee of the Board and the Board such that disclosure processes, including with respect to cash management practices regarding deferring vendor payments quarter to quarter, were impacted." The developments come shortly after investors saw the price of Kyndryl shares crater 55% on February 9, 2026, after the company announced that it would not timely file its quarterly report for the quarter ended December 31, 2025, it anticipated reporting material internal control weaknesses, it suffered C-Suite abrupt departures, and it has come under SEC scrutiny. A securities class action lawsuit triggered by the February 9 disclosure and accompanying stock drop is pending and seeks to represent investors who purchased or otherwise acquired Kyndryl securities between August 7, 2024 and February 9, 2026. These developments and severe market reaction have prompted national shareholder rights law firm Hagens Berman to continue its investigation into claims that Kyndryl violated the federal securities. The firm urges Kyndryl investors who suffered significant losses to contact the firm now to discuss their rights. View our latest video summary of the allegations: youtu.be/yBLSIN6NeQ0 Class Period: Aug. 7, 2024 – Feb. 9, 2026 Kyndryl Holdings, Inc. (KD) Securities Class Action: In the past, infrastructure services company Kyndryl has repeatedly emphasized the effectiveness of its internal control over financial reporting. The complaint alleges, in part, that Kyndryl's disclosure controls and procedures and internal control over financial reporting were ineffective. Investors began to learn the truth on February 9, 2026, when Kyndryl notified investors that it would not timely file its quarterly report because, in contrast to Kyndryl's assurances, its Audit Committee "is reviewing its cash management practices, related disclosures (including the drivers of the Company's free cash flow metric), [and] the efficacy of the Company's internal control over financial reporting[.]" Kyndryl also revealed another bombshell – namely, that it received document requests from the Division of Enforcement of the SEC related to matters being reviewed by the Audit Committee. Lastly, the company announced that, on February 5, CFO David Wyshner and General Counsel Edward Sebold departed effective immediately, while Comptroller Vineet Khurana stepped down. Since these events began to unfold, over $2.4 billion of Kyndryl's market capitalization has been wiped out. "We're investigating whether, having assured investors of the effectiveness of its internal controls and repeatedly touted free cash flow growth, Kyndryl may have intentionally misled investors about the propriety of its deferring vendor payments quarter to quarter and whether such practices may have allowed the company to improperly unlock cash," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation. If you invested in Kyndryl and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to additional frequently asked questions about the firm's Kyndryl investigation, read more » Whistleblowers: Persons with non-public information regarding Kyndryl should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email KD@hbsslaw.com. About Hagens Berman
SOURCE Hagens Berman Sobol Shapiro LLP | ||
Company Codes: NYSE:KD |
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