SAN FRANCISCO, March 19, 2026 (GLOBE NEWSWIRE) -- National shareholder rights law firm Hagens Berman is alerting investors to an expanded securities class action filed against Kyndryl Holdings, Inc. (NYSE: KD). The new litigation expands the potential class of affected investors and introduces new allegations regarding the company’s free cash flow reporting.
REPORT YOUR KD INVESTMENT LOSSES TO HBSS.
The newly filed action, Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds v. Kyndryl Holdings, Inc., et al. (S.D.N.Y.), seeks to represent all persons and entities who purchased or otherwise acquired Kyndryl securities between August 1, 2024, and February 6, 2026, inclusive (the “Expanded Class Period”).
Kyndryl (KD) investors are encouraged to visit our updated case page to review the expanded allegations: www.hbsslaw.com/cases/kd, or view our latest video summary of the allegations: youtu.be/yBLSIN6NeQ0
“The litigation alleges that Kyndryl’s much-touted free cash flow—a key indicator of the company’s growth—was a mirage built on undisclosed and unsustainable cash management practices,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation of the alleged claims in the pending litigation. “We are investigating whether the company used these practices to mask its true financial health, leading to the massive 55% value destruction when the CFO and General Counsel abruptly departed and the SEC's investigation became public.”
Kyndryl Holdings, Inc. (KD) Securities Class Action: Expanded Allegations
While the initial complaint focused primarily on the failure to timely file financial reports and deficient internal controls, the expanded complaint alleges that throughout the Class Period, Kyndryl and its executives failed to disclose:
- Manipulated Cash Flow Metrics: That Kyndryl’s reported free cash flow was artificially inflated by undisclosed and unsustainable cash management practices, rather than genuine operational strength.
- The August 2025 First Reveal: The complaint notes that the truth began to emerge on August 4, 2025, when Kyndryl missed revenue and cash flow estimates, causing a 21% stock drop. Despite this, management allegedly continued to reassure investors about the "durability" of its financial condition.
- SEC Investigation & Executive Exodus: On February 9, 2026, before the market opened, Kyndryl disclosed a voluntary document request from the SEC’s Enforcement Division regarding its cash management practices. Simultaneously, the company announced the immediate departure of its CFO and General Counsel.
- Total Market Fallout: Following the February 9 announcement, Kyndryl’s stock plummeted 55%, falling from $23.49 to $10.59 per share.
Lead Plaintiff Deadline: April 13, 2026
Despite the filing of the new expanded complaint, the April 13, 2026, deadline for investors to move for Lead Plaintiff remains unchanged.
- Submit Your Kyndryl (KD) Expanded Class Period Losses to HBSS
- Contact: Reed Kathrein at 844-916-0895 or email KD@hbsslaw.com
If you’d like more information and answers to additional frequently asked questions about the firm’s Kyndryl investigation, read more »
Whistleblowers: Persons with non-public information regarding Kyndryl should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email KD@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
