お知らせ • Mar 18
Saxena White P.A. Files Securities Class Action Lawsuit Against Kyndryl Holdings, Inc. and Related Parties
Saxena White P.A. has filed a securities class action lawsuit in the United States District Court for the Southern District of New York against Kyndryl Holdings, Inc., and certain Kyndryl executive officers and directors. The Class Action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder on behalf of all persons who purchased or otherwise Kyndryl securities from August 1, 2024 through February 6, 2026, inclusive, and were damaged thereby. The Class Action filed by Saxena White is captioned Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds v. Kyndryl Holdings, Inc., et al., No. 1:26-cv-02211 (S.D.N.Y.). The Class Action complaint expands the allegations and class period asserted in a related action against Kyndryl and certain of its executive officers and directors captioned: Brander v. Kyndryl Holdings, Inc., et al., No. 1:26-cv-0782 (E.D.N.Y. filed February 11, 2026). Specifically, the Class Action expands the class period pled from August 7, 2024 through February 9, 2026 in the Brander Action, to August 1, 2024 through February 6, 2026 in the Class Action, on behalf of all persons and entities that purchased or otherwise acquired Kyndryl securities. Pursuant to the notice published on February 11, 2026 in connection with the filing of the Brander Action, and as required by the Private Securities Litigation Reform Act of 1995, investors wishing to serve as lead plaintiff are required to file a motion for appointment as lead plaintiff by no later than April 13, 2026. Saxena White’s filing of the Class Action does not alter the lead plaintiff deadline. After spinning off from International Business Machines Corp. in 2021, Kyndryl began operating as a standalone, publicly traded company providing information technology infrastructure services. The Company offers cloud hosting, enterprise and mainframe support, application and data services, and artificial intelligence solutions. Leading up to and during the Class Period, Kyndryl consistently emphasized to investors that free cash flow was a key performance metric, highlighting its importance as an indicator of the Company’s financial condition and its potential for profitable growth. The Class Action alleges that Defendants misled investors about Kyndryl’s reported free cash flow metrics and improperly presented those metrics as evidence of the strength and durability of its financial condition and prospects. In truth, the Company’s reported cash generation depended on undisclosed and unsustainable cash management practices that concealed Kyndryl’s true financial condition and prospects from investors. The truth began to emerge after markets closed on August 4, 2025, when Kyndryl issued a press release announcing its financial results for the fiscal first quarter of 2026, reporting revenue of $3.743 billion and free cash flow use of $222 million, both of which missed analysts’ estimates of $3.788 billion and $219 million, respectively. The Company continued to assure investors that it remained committed to delivering significant margin expansion and generating free cash flow growth. On this news, Kyndryl common stock declined $7.76 per share, or about 21%, from a closing price of $36.70 per share on August 4, 2025, to a closing price of $28.94 per share on August 5, 2025. The truth fully emerged before markets opened on February 9, 2026. Kyndryl disclosed that it would not be able to timely file its quarterly report on Form 10-Q for the fiscal third quarter of 2026, due to anticipated internal control weaknesses in its cash management practices. Kyndryl further disclosed that it had received voluntary document requests from the SEC’s Enforcement Division. Additionally, the Company reduced its full-year fiscal 2026 free cash flow guidance from $550 million to between $325 million and $375 million. On this news, Kyndryl common stock declined $12.90 per share, or more than 54%, from a closing price of $23.49 per share on February 6, 2026, to a closing price of $10.59 per share on February 9, 2026.