New Kyndryl Class Action Filing Expands Investor Window, Alleges Inflated Cash Flow

Overview

• Hagens Berman’s Westchester Putnam Counties complaint, filed Thursday, extends the proposed class to purchases from August 1, 2024 through February 6, 2026 and claims Kyndryl overstated free cash flow through undisclosed cash practices.
• The suits center on Kyndryl’s February 9 SEC filing that said the audit committee is reviewing cash management and internal controls after voluntary document requests from the SEC’s Enforcement Division.
• Kyndryl also said it expects to report material weaknesses, warned investors not to rely on past internal-control assessments, and told regulators it would delay its December-quarter 10-Q.
• The company announced the same day that CFO David Wyshner and General Counsel Edward Sebold left their roles immediately, and shares fell 55% to close at $10.59.
• Multiple complaints are pending in New York federal court, including first-filed Brander v. Kyndryl, and investors have until April 13, 2026 to ask the court to be lead plaintiff.