Kessler Topaz sues Kyndryl for securities fraud, investors urged

Kessler Topaz Meltzer & Check filed a securities‑fraud class action against Kyndryl Holdings Inc., arguing the IT services company issued materially misstated financials and lacked adequate internal controls, and notifying investors they have until April 13, 2026 to seek lead‑plaintiff status. The complaint, captioned Brander v. Kyndryl Holdings, Inc., et al., Case No. 1:26‑cv‑00782, is pending in the U.S. District Court for the Eastern District of New York.

The suit covers purchases of Kyndryl securities between August 7, 2024 and February 9, 2026, inclusive. According to plaintiff materials distributed by Kessler Topaz via GlobeNewswire, PR Newswire and NEWMEDIAWIRE between Feb. 12 and Feb. 28, 2026, the complaint alleges four core failures by defendants: (1) Kyndryl’s financial statements issued during the Class Period were materially misstated; (2) Kyndryl lacked adequate internal controls and at times materially understated issues with its internal controls; (3) as a result, Kyndryl would be unable to timely file its quarterly report on Form 10‑Q with the SEC for the quarter ended December 31, 2025; and (4) consequently, defendants’ statements about Kyndryl’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all times.

The filing identifies Kyndryl by ticker, NYSE: KD, and names a plaintiff in the caption as Brander. Investors who purchased KD during the stated period are being urged to contact Kessler Topaz to discuss potential participation; the firm lists Jonathan Naji, Esq. as a contact, phone (484) 270‑1453, email info@ktmc.com and its website, ktmc.com. KTMC’s materials state there is no cost or obligation to speak with an attorney. The firm describes itself as a leading U.S. plaintiff‑side law firm focused on securities‑fraud class actions and investor protection and cites recognitions including The National Law Journal’s Plaintiff’s Hot List, BTI Consulting Group’s Honor Roll, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers and Law360’s Titans of the Plaintiffs Bar.

Procedurally, the complaint and related press notices advise potential lead plaintiffs to file by the April 13 deadline; one KTMC posting included a time‑dependent countdown metric that reflected the page’s posting date but did not replace the explicit deadline. Distribution artifacts across services included feed formatting text and minor snippets that do not affect the substance of the complaint.

Market and regulatory implications hinge on the complaint’s allegation that Kyndryl could not timely file its Form 10‑Q for the quarter ended Dec. 31, 2025. Allegations of misstated results and weak controls typically draw investor litigation, heightened SEC interest and volatile trading in the issuer’s shares while the matters are investigated and resolved. Shareholders and institutional investors weighing lead‑plaintiff roles should review the full complaint and Kyndryl’s SEC filings for details on the alleged misstatements and the company’s disclosures.

Reporters and investors seeking the complaint, docket entries or additional comment can review the Eastern District of New York docket and Kessler Topaz’s case page or contact KTMC directly. Follow‑up reporting should verify the complaint text for named individual defendants and track any responses from Kyndryl or filings on PACER.