Kyndryl stock drops by 55 percent in a single day as SEC investigates

"Kyndryl is facing significant hurdles. The CFO and the head of legal affairs left suddenly, while the Securities and Exchange Commission (SEC) in the US has launched an investigation. Kyndryl is trying to calm the situation, but the company's stock value fell by 55 percent in a single day. Kyndryl received document requests from the US stock market regulator SEC regarding cash management, related reporting, and internal controls. The company reported this in a registration document on Monday. It is also conducting an accounting investigation through the audit committee of the board of directors."

"The share price plummeted from $23.60 to $10.59, a drop of 55 percent. At the time of writing, there are signs of a very slight recovery to $11.12. CEO Martin Schroeter emphasized during a conference call that Kyndryl does not expect any impact on its financial statements. "We are cooperating with the SEC," Schroeter said. "Due to the ongoing nature of these matters, we cannot comment further." Exodus in management Immediately after the SEC filing, Kyndryl announced major changes to its management team. CFO David Wyshner, who had been with the company since September 2021, left abruptly. Harsh Chugh was appointed interim CFO. General Counsel Edward Sebold also stepped down, replaced by interim Mark Ringes."

Kyndryl received SEC document requests about cash management, related reporting, and internal controls and has launched an accounting investigation through the audit committee. The company experienced abrupt departures of its CFO and general counsel, named interim replacements, and reassigned other senior finance roles. The share price plunged from $23.60 to $10.59 (about 55 percent) and later showed a slight recovery to $11.12, while Kyndryl postponed its 10-Q filing. CEO Martin Schroeter said the company does not expect an impact on financial statements and confirmed cooperation with the SEC. Multiple law firms have opened investigations, and operational pressure continues amid Solvinity takeover turmoil affecting DigiD.

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