Kyndryl Faces Securities Class Action After 53% Share Plunge and Accounting Review
Updated
Updated · Financial Times · Sep 30
Kyndryl Faces Securities Class Action After 53% Share Plunge and Accounting Review
1 articles · Updated · Financial Times · Sep 30
Summary
A putative securities class action has been filed against Kyndryl and its executives, with the court weighing competing motions to appoint lead plaintiff and lead counsel under the PSLRA.
The case follows Kyndryl’s delayed October-December filing, management changes and an accounting review launched after the company identified potential weaknesses in internal controls.
Kyndryl said senior finance executives failed to set the right tone, lacked transparency with the CEO and board, and affected disclosure processes including quarter-to-quarter deferral of vendor payments.
Shares plunged 53% on Feb. 9 after those disclosures, turning the internal-control issues into a broader investor-liability fight over what the company told the market.