Klarna Faces Class Action Lawsuit Over IPO Misstatements
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 29 Jan 26
Source: Globenewswire
Klarna Group PLC's stock has fallen significantly, hitting a 52-week low amid ongoing legal challenges.
The company is facing a class action lawsuit related to its September 2025 IPO, where investors allege that Klarna provided false and misleading information in its IPO documents. This lawsuit has raised concerns about the company's financial health, particularly after a reported 102% year-over-year increase in credit loss provisions shortly after the IPO, which has severely impacted investor confidence.
As Klarna navigates these legal challenges, the implications for its reputation and future financing capabilities remain uncertain, especially with the upcoming Q4 2025 earnings report scheduled for February 19, 2026.
Analyst Views on KLAR
Wall Street analysts forecast KLAR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAR is 44.36 USD with a low forecast of 36.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 24.140
Low
36.00
Averages
44.36
High
55.00
Current: 24.140
Low
36.00
Averages
44.36
High
55.00
About KLAR
Klarna Group Plc is a United Kingdom-based technology company focused on developing commerce networks. The Company is an artificial intelligence (AI)-powered global payments network and shopping assistant. It provides consumers and merchants with a range of solutions, including payment, advertising and digital retail banking, through several channels. Its online payments solution is designed to bridge uncertainty in the transactions between consumers and merchants by providing short-term credit to consumers interest-free. Its range of payment options allows consumers to purchase what they choose, both online and offline. Its payment solutions include Pay in Full, Pay Later and Fair Financing. Its Pay in Full instantly settles purchases at the time of the transaction. Its Pay Later enables consumers to purchase goods or services at the time of the transaction and pay the full amount at a later date. Its Fair Financing allows consumers to pay for their purchase over a longer duration.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
