** Shares of technology services company Kyndryl Holdings KD.N fall 14.5% to $29.13

** Short-seller fund Gotham City Research issues report saying KD manipulates reported adj. EBITDA and adj. free cash flow to artificially give the appearance that it generates profits and cash flow; while in reality, KD generates losses and burns cash

** Says have identified accounting and disclosure irregularities regarding KD's reported 2019-2023 payments to IBM IBM.N

** "KD reports $1,382 mln as its 6-month, 9-month, and 12-month related party cost of services figure (how much it pays to IBM). We find this highly confusing and suspect," says Gotham City Research

** Says "KD discontinued reporting its IBM costs since 2023, despite the fact that IBM has been Kyndryl's largest supplier"

** Kyndryl did not immediately respond to a Reuters request for comment

** Shares had risen 66.5% in 2024

(Reporting by Harshita Mary Varghese in Bengaluru)

((HarshitaMary.Varghese@thomsonreuters.com))