Saxena White Files New Securities Lawsuit Against Kyndryl

Lawsuit expands allegations and class period against IT services firm

Mar. 18, 2026 at 3:22am

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Saxena White P.A. has filed a new securities class action lawsuit against Kyndryl Holdings, Inc. and certain executive officers and directors. The lawsuit expands the allegations and class period of a related action, alleging that Kyndryl misled investors about its reported free cash flow metrics and concealed the company's true financial condition.

Why it matters

This lawsuit highlights ongoing concerns about Kyndryl's financial reporting and transparency with investors following its spinoff from IBM. The expanded allegations and class period suggest the potential scale of investor losses and the company's accountability for its actions.

The details

The new class action lawsuit, filed in the U.S. District Court for the Southern District of New York, asserts claims under federal securities laws on behalf of all persons who purchased Kyndryl securities from August 1, 2024 through February 6, 2026. The lawsuit alleges that Kyndryl misled investors about its reported free cash flow, which depended on undisclosed and unsustainable cash management practices that concealed the company's true financial condition.

  • The class period is expanded from August 7, 2024 through February 9, 2026 in a related lawsuit, to August 1, 2024 through February 6, 2026 in the new class action.
  • Investors have until April 13, 2026 to file a motion to be appointed as lead plaintiff in the class action.

The players

Saxena White P.A.

A leading national law firm focused on prosecuting securities class actions and other complex litigation on behalf of injured investors.

Kyndryl Holdings, Inc.

An IT infrastructure services company that was spun off from IBM in 2021.

David B. Wyshner

Former Chief Financial Officer of Kyndryl, who departed the company effective immediately.

Edward Sebold

Former General Counsel of Kyndryl, who departed the company effective immediately.

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What they’re saying

“Saxena White's filing of the Class Action does not alter the lead plaintiff deadline.”

— Marco A. Dueñas, Senior Attorney, Saxena White P.A. (Saxena White P.A.)

What’s next

The judge will decide on April 13, 2026 whether to appoint a lead plaintiff in the class action lawsuit.

The takeaway

This case highlights ongoing concerns about Kyndryl's financial reporting and transparency with investors following its spinoff from IBM, raising questions about the company's accountability and the potential scale of investor losses.