Law Offices of Frank R. Cruz Files Securities Fraud Lawsuit Against Kyndryl Holdings

Shareholders urged to inquire about potential recovery of losses in ongoing class action lawsuit.

Published on Feb. 13, 2026

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The Law Offices of Frank R. Cruz has filed a securities fraud class action lawsuit on behalf of shareholders who purchased or acquired Kyndryl Holdings, Inc. (NYSE: KD) securities between August 7, 2024 and February 9, 2026. The lawsuit alleges that Kyndryl made materially false and misleading statements about its financial condition and internal controls during this period, leading to significant losses for investors when the truth was revealed.

Why it matters

This lawsuit highlights the importance of corporate transparency and accurate financial reporting, especially for publicly traded companies. Investors rely on this information to make informed decisions, and any misrepresentations can lead to substantial losses. The case also raises questions about Kyndryl's corporate governance and oversight, which will likely be scrutinized as the lawsuit proceeds.

The details

According to the complaint, Kyndryl failed to disclose that its financial statements were materially misstated, that it lacked adequate internal controls, and that it would be unable to timely file its Q4 2025 quarterly report. On February 9, 2026, Kyndryl announced the departures of its CFO and General Counsel, as well as the need to review its cash management practices, internal controls, and other matters following a request for documents from the SEC. This news caused Kyndryl's stock price to plummet 54.9% in a single day, injuring investors.

  • The class period covers securities purchased between August 7, 2024 and February 9, 2026.
  • Kyndryl shareholders have until April 13, 2026 to file a lead plaintiff motion in the lawsuit.

The players

Law Offices of Frank R. Cruz

A law firm representing shareholders in the securities fraud class action lawsuit against Kyndryl Holdings, Inc.

Kyndryl Holdings, Inc.

A publicly traded information technology infrastructure services company that is the defendant in the securities fraud lawsuit.

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What’s next

Kyndryl shareholders have until April 13, 2026 to file a lead plaintiff motion in the ongoing securities fraud class action lawsuit.

The takeaway

This lawsuit underscores the need for public companies to maintain robust internal controls and provide accurate, transparent financial reporting to investors. The significant stock price drop following Kyndryl's disclosures demonstrates the real-world impact that corporate misrepresentations can have on shareholders.