Kyndryl Holdings Faces Class Action Lawsuit Deadline

Investors have until April 13, 2026 to join lawsuit over alleged securities fraud

Mar. 18, 2026 at 3:34am

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Kahn Swick & Foti, LLC, a national securities litigation law firm, has notified investors in Kyndryl Holdings, Inc. (NYSE: KD) of a class action lawsuit related to alleged securities fraud between August 7, 2024 and February 9, 2026. The lawsuit seeks to recover losses for investors who were adversely affected during this time period.

Why it matters

The lawsuit highlights growing concerns about Kyndryl's financial reporting and internal controls, which the company has acknowledged include material weaknesses. This could have significant implications for the company and its investors.

The details

On February 9, 2026, Kyndryl disclosed that it would be unable to timely file its Q3 2025 financial report and that it anticipates reporting material weaknesses in its internal controls over financial reporting for the full fiscal year 2025 and the first two quarters of fiscal 2026. This news caused Kyndryl's stock price to plummet 55% to $10.59 per share. The class action lawsuit alleges securities fraud during this period.

  • The class action lawsuit covers the period from August 7, 2024 to February 9, 2026.
  • Investors have until April 13, 2026 to apply to be the lead plaintiff in the case.

The players

Kyndryl Holdings, Inc.

A publicly traded IT infrastructure services company that was spun off from IBM in 2021.

Kahn Swick & Foti, LLC

A national securities litigation law firm that is representing investors in the class action lawsuit against Kyndryl.

Charles C. Foti, Jr.

The former Attorney General of Louisiana and a partner at Kahn Swick & Foti, LLC.

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What they’re saying

“Kyndryl investors should contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850, or via email (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nyse-kd/ to learn more.”

— Lewis Kahn, Managing Partner, Kahn Swick & Foti, LLC

What’s next

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

The takeaway

This case highlights the importance of strong financial reporting and internal controls for publicly traded companies. Investors will be closely watching how Kyndryl addresses the material weaknesses identified and the outcome of the class action lawsuit.