Levi & Korsinsky LLP
03/23/2026 | Press release | Distributed by Public on 03/23/2026 08:04
When Controls Crash: Kyndryl Investors Confront Allegations of Misstated Financials
Kyndryl told investors its financial controls were solid. Effective. Remediated. Nothing to worry about.
But behind the scenes, the numbers were not adding up.
Starting in August 2024, Kyndryl filed quarterly reports admitting to limited IT control issues, while assuring investors there were no material misstatements. In May 2025, the company went even further. It declared its internal controls fully effective in its annual report.
That reassurance did not last.
On February 9, 2026, Kyndryl stunned the market. It announced it could not file its quarterly report on time. The company revealed an SEC investigation into its financial reporting and admitted there were material weaknesses in its internal controls stretching back to fiscal year 2025. Its prior internal control opinion could no longer be relied upon.
Investors panicked. The stock plunged about 55% in a single day.
Now, more investors are joining the lawsuit.
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