Kyndryl Holdings, Inc. (KD) Stock Drop Lawsuit Investigation
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What is the Kyndryl Holdings (KD) Lawsuit Investigation About?
Shares of Kyndryl Holdings, Inc. fell over 54% in intraday trading on February 9, 2026, after the company disclosed it is launching an internal review of its account practices, delayed its quarterly filing, and announced the departure of its Chief Financial Officer and General Counsel.
Gibbs Mura is investigating a potential Kyndryl Holdings lawsuit for investors over the company’s possible violations of federal securities laws. This potential lawsuit seeks to help Kyndryl Holdings (KD) shareholders recover their losses.
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Why is Kyndryl Holdings (NYSE: KD) Stock Dropping?
On February 9, 2026, Kyndryl Holdings disclosed it is conducting an internal review of its accounting practices following an inquiry from the Division of Enforcement of the Securities and Exchange Commission (SEC). The company stated that its Audit Committee will investigate the company’s cash management practices and related disclosures, internal control over financial reporting, and “certain other matters,” following related document requests from the SEC.
In addition, the company announced it will delay the filing of its Form 10-Q for the quarter ended December 31, 2025 and that, when filed, it expects it will “report material weaknesses in the company’s internal control over financial reporting” for the period covered in the report, as well as the full fiscal year ended March 31, 2025, and the first two quarters of fiscal year 2026.
Additionally, the company revealed that its Chief Financial Officer, David Wysher, and General Counsel, Edward Sebold, have both left the company, effective immediately.
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Additional FAQs
How do securities class action lawsuits work?
Publicly traded companies are legally required to provide truthful, accurate information to investors. When a company misrepresents facts, conceals risks, or engages in fraudulent practices, investors can suffer significant financial harm. Securities class action lawsuits allow affected shareholders to seek recovery for their investment losses and hold the company accountable for violating the law.
Could I have a claim related to Kyndryl Holdings stock losses?
You may have a potential claim if you lost money investing in Kyndryl Holdings (KD). Even if you are unsure whether your situation qualifies, our team can review your information confidentially at no cost.
How can I get my money back from my Kyndryl Holdings investment?
If you invested in Kyndryl Holdings (KD), you may be eligible to recover your investment losses. Fill out the form above so that our team can confidentially contact you about your potential options.
Do I have to pay anything out of pocket?
No; participating in a securities class action lawsuit with our firm will never cost you anything out of pocket. If a lawsuit is filed and is successful down the line, the court typically has the discretion to award fair attorney's fees out of a gross recovery.
What is your firm’s experience with investor lawsuits against companies like Kyndryl Holdings?
Our financial fraud and securities lawyers have more than two decades of experience prosecuting fraud and have successfully litigated against some of the largest companies in the United States. We’ve recovered more than a billion dollars on our clients’ behalf.
Can I still participate if I already sold my Kyndryl Holdings shares?
You may still be eligible even if you no longer own Kyndryl Holdings shares. Many investors who participate in securities cases sold their shares after a stock price decline. Your eligibility to join a securities class action depends on if you purchased or acquired your shares during the relevant period, called the “class period.”
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