Faruqi & Faruqi, LLP Reminds Kyndryl (KD) Shareholders of Critical April 13, 2026 Securities Class Action Deadline

Investors who purchased shares of Kyndryl Holdings, Inc. (NYSE: KD) are being reminded of an important legal deadline in an ongoing securities class action lawsuit. National securities law firm Faruqi & Faruqi, LLP has issued a public notice urging affected shareholders to take prompt action before the April 13, 2026 deadline to seek appointment as lead plaintiff in the case.

The lawsuit centers on allegations that Kyndryl and certain executives made materially false or misleading statements regarding the company’s business performance, financial outlook, and internal operations. Investors who suffered financial losses during the relevant period may have the opportunity to participate in the legal action and potentially recover damages.

Overview of the Securities Class Action

The securities class action lawsuit alleges that Kyndryl, a global IT infrastructure services provider, misled investors by failing to disclose key information that significantly impacted the company’s financial condition and growth prospects. According to the complaint, these omissions and misrepresentations resulted in artificially inflated stock prices during the class period.

When the truth allegedly became known to the market, Kyndryl’s share price declined, causing substantial losses to investors. The lawsuit seeks to recover damages for shareholders who purchased or otherwise acquired Kyndryl securities during the relevant timeframe and were harmed when the stock value dropped.

Key Allegations Against Kyndryl

The complaint filed in federal court outlines several major allegations, including:

• Misrepresentation of Business Performance: Plaintiffs allege that Kyndryl overstated the stability and sustainability of its revenue streams.
• Failure to Disclose Operational Challenges: The lawsuit claims the company did not adequately inform investors about customer attrition and contract renewals that negatively impacted revenue forecasts.
• Inflated Financial Projections: It is alleged that company executives provided overly optimistic guidance that was not supported by underlying business realities.
• Material Omissions: Plaintiffs contend that critical information regarding internal weaknesses and declining service demand was withheld from the investing public.

These alleged misstatements and omissions, if proven, may constitute violations of federal securities laws designed to protect investors from fraudulent or misleading corporate disclosures.

Who May Be Affected?

Investors who purchased or acquired Kyndryl common stock during the specified class period and suffered financial losses may be eligible to join the lawsuit. Shareholders are encouraged to review their investment records and assess whether they fall within the defined timeframe outlined in the complaint.

Importantly, participating in the class action does not automatically require an investor to serve as lead plaintiff. However, investors who wish to take a more active leadership role in the litigation must file a motion with the court by April 13, 2026.

What Is a Lead Plaintiff?

In securities class action litigation, a lead plaintiff is a court-appointed representative who acts on behalf of all class members. The lead plaintiff works closely with legal counsel, helps guide the direction of the case, and represents the interests of other affected investors.

Typically, the court appoints the investor or group of investors with the largest financial interest in the litigation who also meet adequacy and typicality requirements under federal law.

Investors are not required to serve as lead plaintiff to share in any potential recovery. Even if an individual chooses not to seek appointment, they may remain an absent class member and still benefit from a favorable resolution.

Details About Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP is a nationally recognized securities litigation firm with offices across the United States. The firm has represented thousands of investors in complex securities class actions and has recovered substantial sums on behalf of shareholders over the years.

The firm regularly investigates claims involving corporate fraud, accounting irregularities, misleading financial statements, and breaches of fiduciary duty. Its legal team encourages any Kyndryl investor with information regarding the alleged misconduct to come forward, as additional insights may assist in strengthening the case.

Investor Rights and Next Steps

Shareholders who believe they were impacted should consider taking the following steps:

1. Review Investment History: Confirm purchase dates and amounts of Kyndryl shares during the class period.
2. Assess Financial Losses: Calculate potential damages resulting from stock price declines.
3. Consult Legal Counsel: Speak with a qualified securities attorney to evaluate eligibility.
4. File a Motion if Seeking Lead Plaintiff Status: Ensure submission before the April 13, 2026 deadline.

Missing the deadline to apply for lead plaintiff status does not eliminate an investor’s right to participate in the case. However, failing to act promptly could limit certain procedural rights within the litigation.

Market Reaction and Financial Impact

Following disclosures that allegedly revealed the company’s operational and financial challenges, Kyndryl’s stock price experienced notable volatility. Analysts observed that the company’s revised forecasts and revenue outlook contributed to investor concern and heightened scrutiny.

Such price fluctuations often serve as a catalyst for securities litigation when investors believe that prior disclosures were incomplete or misleading. The lawsuit aims to determine whether the company’s public statements complied with federal securities regulations.

Understanding Securities Class Actions

Securities class actions are legal mechanisms that allow a group of investors with similar claims to consolidate their cases into a single lawsuit. This structure promotes efficiency, reduces legal costs, and ensures consistent outcomes.

Under the Private Securities Litigation Reform Act (PSLRA), courts oversee the appointment of lead plaintiffs and ensure fair representation of all class members. The law also establishes procedural safeguards designed to prevent abusive litigation while protecting legitimate investor claims.

Importance of Timely Action

Legal deadlines in securities cases are strictly enforced. Investors who wish to preserve their rights should carefully note the April 13, 2026 cutoff date. Filing a motion for lead plaintiff status requires proper documentation and adherence to court procedures.

Faruqi & Faruqi emphasizes that time-sensitive filings are critical in maintaining eligibility for leadership roles in the litigation. Early consultation with counsel may help ensure compliance with procedural requirements.

Potential Outcomes of the Case

While litigation outcomes cannot be guaranteed, securities class actions may result in:

• Monetary settlements compensating affected investors
• Court-approved judgments awarding damages
• Corporate governance reforms
• Enhanced transparency and disclosure practices

Settlements are common in securities litigation and often occur after negotiations between parties or court-supervised mediation.

Encouragement for Whistleblowers

Faruqi & Faruqi also invites individuals with non-public information regarding Kyndryl’s alleged misconduct to contact the firm. Whistleblowers can play a critical role in uncovering corporate wrongdoing and strengthening investor claims.

Information from current or former employees, consultants, or industry insiders may provide valuable context about internal operations and disclosure practices during the class period.

How to Participate

Investors interested in participating in the lawsuit or seeking additional information can contact Faruqi & Faruqi, LLP directly through their official website or via telephone. Initial consultations are typically confidential and free of charge.

Participation does not require upfront legal fees in most securities class actions, as these cases are commonly handled on a contingency basis. This means attorneys’ fees are generally recovered only if there is a successful outcome.

Conclusion

The reminder issued by Faruqi & Faruqi, LLP underscores the importance of investor vigilance and timely legal action. Shareholders of Kyndryl who experienced financial losses should carefully evaluate their options before the April 13, 2026 deadline.

By staying informed and proactive, investors can better protect their rights and seek potential recovery under federal securities laws. As the litigation progresses, additional developments may further clarify the scope of the alleged misconduct and its financial impact.

Investors are encouraged to act promptly, review their records, and consult experienced securities counsel to determine the most appropriate course of action.

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