Kahn Swick & Foti, LLC notifies Kyndryl investors of class action

Kahn Swick & Foti, LLC and partner Charles C. Foti, Jr. notified investors in Kyndryl Holdings, Inc. of a class action securities lawsuit that sought to recover losses for investors who were affected by alleged securities fraud between Aug. 7, 2024 and Feb. 9, 2026.

On Feb. 9, 2026, Kyndryl disclosed that it would be unable to timely file its Form 10-Q and reported the departures of its chief financial officer and general counsel; the company’s share price fell $12.90, or 55 percent, to close at $10.59 that day.

The notification referenced the company’s internal control over financial reporting and called out controls related to information and communication and tone at the top as areas of concern noted in the disclosure covering the Quarterly Report period.

The lawsuit defined the class as investors who suffered losses during the Aug. 7, 2024 to Feb. 9, 2026 period and was filed as Brander v. Kyndryl Holdings, Inc., et al., No. 26-cv-00782; affected investors were told they had until April 13, 2026 to request appointment as lead plaintiff and that sharing in any recovery did not require serving as lead plaintiff, and KSF provided contact information for Lewis Kahn by phone and email.

The company said it anticipated reporting material weaknesses in its internal control over financial reporting for the period covered in the Quarterly Report, and for the full fiscal year ended March 31, 2025, and the first two fiscal quarters of fiscal year 2026.