Saxena White Files New Lawsuit Against Kyndryl, Expanding Allegations

The lawsuit alleges Kyndryl misled investors about its free cash flow metrics and financial condition.

Mar. 18, 2026 at 3:08am

Got story updates? Submit your updates here. ›

Saxena White P.A. has filed a new securities class action lawsuit against Kyndryl Holdings, Inc. and certain executive officers and directors. The lawsuit alleges Kyndryl misled investors about its reported free cash flow metrics, which depended on undisclosed and unsustainable cash management practices that concealed the company's true financial condition. The lawsuit expands the class period from the previous related lawsuit, now covering August 1, 2024 through February 6, 2026.

Why it matters

This lawsuit highlights concerns about Kyndryl's financial reporting and transparency with investors. The allegations of misleading cash flow metrics and internal control weaknesses could undermine investor confidence in the company's prospects and financial health.

The details

The lawsuit alleges Kyndryl consistently emphasized free cash flow as a key performance metric to investors, but that the company's reported cash generation depended on undisclosed and unsustainable cash management practices. This allegedly concealed Kyndryl's true financial condition from investors. The truth began to emerge in August 2025 when Kyndryl missed revenue and free cash flow estimates, and then fully emerged in February 2026 when the company disclosed anticipated internal control weaknesses in its cash management practices, received SEC document requests, and reduced its full-year free cash flow guidance.

  • On August 4, 2025, Kyndryl issued a press release announcing Q1 2026 results that missed analyst estimates.
  • On February 9, 2026, Kyndryl disclosed it would not timely file its Q3 2026 report due to anticipated internal control weaknesses in cash management practices.

The players

Kyndryl Holdings, Inc.

A publicly traded company providing IT infrastructure services, spun off from IBM in 2021.

David B. Wyshner

Kyndryl's former Chief Financial Officer, who departed the company effective immediately on February 9, 2026.

Edward Sebold

Kyndryl's former General Counsel, who departed the company effective immediately on February 9, 2026.

Got photos? Submit your photos here. ›

What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.