Saxena White P.A. Files New Securities Class Action Lawsuit Against Kyndryl Holdings, Inc. and Related Parties, Expanding the Allegations and Class Period

BOCA RATON, Fla., March 17, 2026 (GLOBE NEWSWIRE) -- Saxena White P.A. has filed a securities class action lawsuit (the “Class Action ”) in the United States District Court for the Southern District of New York against Kyndryl Holdings, Inc. (“Kyndryl” or the “Company”) (NYSE: KD), and certain Kyndryl executive officers and directors (“Defendants”). The Class Action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and U.S. Securities and Exchange Commission (“SEC”) 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 Feb. 11, 2026) (the “Brander Action ”). 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 (PSLRA), 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 IBM . ( IBM ) in 2021, Kyndryl began operating as a standalone, publicly traded company providing information technology (IT) 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. Nonetheless, the Company continued to assure investors that it “remain[ed] 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, and that Chief Financial Officer David B. Wyshner and General Counsel Edward Sebold departed from the Company, effective immediately.   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.

If you purchased Kyndryl securities during the Class Period and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as lead plaintiff. If you wish to apply to be lead plaintiff, a motion on your behalf must be filed with the U.S. District Courts for the Eastern and Southern Districts of New York no later than April 13, 2026. The lead plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as lead plaintiff to share in any Class recovery in the Class Action . If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member.

You may contact Marco A. Dueñas (mduenas@saxenawhite.com), a Senior Attorney at Saxena White P.A., to discuss your rights regarding the appointment of lead plaintiff or your interest in the Class Action . You also may retain counsel of your choice to represent you in the Class Action . You may obtain a copy of the Complaint and inquire about actively joining the Class Action at www.saxenawhite.com.

Saxena White P.A., with offices in Florida, New York, California, and Delaware, is a leading national law firm focused on prosecuting securities class actions and other complex litigation on behalf of injured investors. Currently serving as lead counsel in numerous securities class actions nationwide, Saxena White has recovered billions of dollars on behalf of injured investors.

CONTACT INFORMATION
Marco A. Dueñas, Esq.
mduenas@saxenawhite.com
Saxena White P.A.
10 Bank Street, Suite 882
White Plains, New York 10606
Tel.: (914) 200-3263
www.saxenawhite.com