Case Overview: A class action lawsuit filed in federal court alleges that Kyndryl Holdings, Inc. and certain executives made material misrepresentations that harmed investors.

Consumers Affected: Investors who purchased Kyndryl Holdings (KD) securities during the applicable class period

Court: U.S. District Court, Southern District of New York

Kyndryl Holdings Faces Securities Fraud Class Action Alleging Investor Harm

A union benefit fund has filed a securities fraud class action lawsuit against Kyndryl Holdings, Inc., the IT infrastructure services company spun off from IBM in 2021, along with two of its top executives. The lawsuit, filed in the U.S. District Court for the Southern District of New York, alleges violations of the Securities Exchange Act and claims that investors suffered losses as a result.

According to a class action complaint filed on March 17, 2026, the lead plaintiff — Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds — is bringing the case individually and on behalf of all others similarly situated. The filing includes a PSLRA certification, a procedural requirement under the Private Securities Litigation Reform Act that signals the plaintiffs intend to pursue the case as a formal securities fraud action.

Lawsuit Names Kyndryl Executives as Defendants

The complaint names Kyndryl Holdings, Inc. (NYSE: KD) as the primary corporate defendant, along with two individual executives: Martin J. Schroeter, and David B. Wyshner. The inclusion of individual executives alongside the company is typical in securities fraud class actions, where plaintiffs allege that specific officers made or were responsible for the allegedly misleading statements at issue.

The lawsuit was brought under Section 15:78m(a) of the Securities Exchange Act, which governs disclosure obligations and prohibits material misrepresentations in connection with securities transactions.

What the PSLRA Certification Signals

The filing includes a PSLRA certification — an attachment required under the Private Securities Litigation Reform Act of 1995, a federal law designed to curb frivolous securities lawsuits while still protecting legitimate investor claims. Under the PSLRA, lead plaintiffs must certify their transactions in the relevant securities during the class period and affirm that they are not bringing the lawsuit simply to collect a fee.

The presence of a union benefit fund as lead plaintiff is notable. Institutional investors such as pension and benefit funds are frequently appointed as lead plaintiffs in securities class actions because of the size of their potential losses and their capacity to actively oversee litigation on behalf of a broader class of investors.

About Kyndryl Holdings

Kyndryl was spun off from IBM in November 2021 and operates as one of the world's largest IT infrastructure services providers, managing complex technology systems for major corporations and government clients globally. The company's transition to an independent publicly traded entity has been closely watched by investors and analysts tracking its financial performance and strategic direction since the separation.

What Investors Should Know

Investors who purchased Kyndryl Holdings securities during the relevant class period may have potential legal options depending on the facts established in the litigation. The class period — the specific timeframe during which the alleged fraud is said to have occurred — had not been detailed in the initial complaint excerpt available at the time of this report.

Under the PSLRA, investors who believe they suffered losses have a limited window to move for appointment as lead plaintiff. That deadline is typically 60 days from the date of the first published notice of the lawsuit.

No response from Kyndryl Holdings or the named individual defendants was available at the time of publication.

Related Cases

• IBM Faces Investor Scrutiny After Major Spinoffs
• Securities Fraud Class Actions: What Investors Need to Know

Lawsuit: Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds v. Kyndryl Holdings, Inc., et al.

Case Number: 1:26-cv-02211

Court: U.S. District Court, Southern District of New York

Filed: March 17, 2026

Plaintiffs' Attorneys: Marco Antonio Duenas, Saxena White P.A.

Have you invested in Kyndryl Holdings (KD) and experienced losses? Share your experience in the comments below.

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