Kyndryl Holdings (KD) Shares Crater Amid Late Filing, Abrupt CFO and GC Departures, SEC Investigation – Hagens Berman
SAN FRANCISCO - Investors in Kyndryl Holdings, Inc. (NYSE: KD) saw the price of their shares fall nearly 57% during trading on February 9, 2026 after the company announced that it would not timely file its quarterly report for the quarter ended December 31, 2025 and that its CFO (David Wyshner) and General Counsel (Edward Sebold) departed effective immediately four days before.
These developments and severe market reaction have prompted national shareholder rights law firm Hagens Berman to open an investigation into whether Kyndryl may have misled investors about the propriety of assurances that its financial statements have been prepared consistent with relevant accounting rules and that its disclosure controls were sufficient. The firm urges Kyndryl investors who suffered significant losses to contact the firm now to discuss their rights.
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Contact the Firm Now: [email protected], 844-916-0895
Kyndryl Holdings, Inc. (KD) Investigation:
In the past, infrastructure services company Kyndryl has emphasized “strong conversion of our earnings to free cash flow” and assured investors that its internal control over financial reporting is sufficient.
Kyndryl’s assurances may have come into question on February 9, 2026, when it made three startling disclosures.
First, the company notified investors that it would not timely file its quarterly report because Kyndryl’s 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[.]”
Second, Kyndryl revealed it received document requests from the Division of Enforcement of the SEC related to matters being reviewed by the Audit Committee.
Third, the company announced that Wyshner and Sebold departed on February 5, 2026, and its comptroller (Vineet Khurana) stepped down while assuming another position.
The market’s reaction was severe, as the price of Kyndryl shares plunged nearly 57% during trading that day, 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 that is keenly focused on free cash flow,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Kyndryl and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
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 [email protected].
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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.
