Kyndryl Holdings (KD) Shares Crater Amid Late Filing, Abrupt CFO and GC Departures, SEC Investigation – Hagens Berman

SAN FRANCISCO--(BUSINESS WIRE)--Kyndryl Holdings, Inc. (NYSE: KD) shares fell nearly 57% on Feb. 9, 2026, after the company announced it would not timely file its quarterly report for the quarter ended Dec. 31, 2025, and that its CFO, David Wyshner, and General Counsel, Edward Sebold, departed the company.

These events prompted Hagens Berman, a national shareholder rights law firm, to investigate whether the company may have misled investors about assurances that its financial statements were prepared consistent with relevant accounting rules and that its disclosure controls were sufficient.

Investors who suffered significant losses are encouraged to contact the firm today.

Key information:

• Investors who suffered losses are encouraged to report them.
• Website: hbsslaw.com/cases/kyndryl
• Email: [e-mail]
• Phone: [phone]

About the Kyndryl Holdings, Inc. (KD) Investigation:

Kyndryl, an infrastructure services company, previously emphasized “strong conversion of our earnings to free cash flow” and assured investors that its internal control over financial reporting is sufficient.

On Feb. 9, 2026, the company made three key disclosures:

1. It would not timely file its quarterly report because its audit committee “is reviewing its cash management practices, related disclosures (including the drivers of the Company’s free cash flow metric), [and] the efficacy of the Company’s internal control over financial reporting[.]”
2. The company received document requests from the SEC related to matters being reviewed by the audit committee.
3. The CFO and general counsel departed the company, and its comptroller, Vineet Khurana, stepped down.

In response, Kyndryl shares plunged nearly 57%, wiping out over $3 billion of market capitalization in a single day.

“We’re investigating whether, having repeatedly touted free cash flow growth, Kyndryl may have misled investors about the propriety of its cash management practices in an industry keenly focused on free cash flow,” said Reed Kathrein, the attorney leading the investigation.

If you suffered substantial losses, contact Hagens Berman at www.hbsslaw.com/investor-fraud/kd.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights law firm specializing in complex litigation and corporate accountability. The firm represents investors, whistleblowers, workers, and others harmed by corporate wrongdoing. Hagens Berman has secured $2.9 billion in this area of law. More at hbsslaw.com and @ClassActionLaw.