Faruqi & Faruqi Encourages Klarna Investors to Reach Out
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy KLAR?
Source: Globenewswire
- Legal Investigation: Faruq & Faruq LLP is investigating potential claims against Klarna Group plc and reminds investors to seek lead plaintiff status by February 20, 2026, to participate in the federal securities class action against the company.
- Financial Loss Disclosure: Klarna's post-IPO earnings report revealed a record revenue but a net loss of $95 million due to increased loan loss provisions, with provisions rising from 0.44% to 0.72% of gross merchandise volume, indicating significant financial strain.
- Stock Price Impact: Following the earnings report on November 18, 2025, Klarna's stock fell by 9.3%, reflecting market concerns over the company's financial health, particularly in light of the substantial increase in loan loss provisions.
- Investor Rights Protection: Faruq & Faruq LLP encourages all individuals with information regarding Klarna's conduct, including whistleblowers and former employees, to come forward to ensure effective protection of investor rights.
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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: 22.920
Low
36.00
Averages
44.36
High
55.00
Current: 22.920
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.
Faruqi & Faruqi Encourages Klarna Investors to Reach Out
- Legal Investigation: Faruq & Faruq LLP is investigating potential claims against Klarna Group plc and reminds investors to seek lead plaintiff status by February 20, 2026, to participate in the federal securities class action against the company.
- Financial Loss Disclosure: Klarna's post-IPO earnings report revealed a record revenue but a net loss of $95 million due to increased loan loss provisions, with provisions rising from 0.44% to 0.72% of gross merchandise volume, indicating significant financial strain.
- Stock Price Impact: Following the earnings report on November 18, 2025, Klarna's stock fell by 9.3%, reflecting market concerns over the company's financial health, particularly in light of the substantial increase in loan loss provisions.
- Investor Rights Protection: Faruq & Faruq LLP encourages all individuals with information regarding Klarna's conduct, including whistleblowers and former employees, to come forward to ensure effective protection of investor rights.
See More
Klarna Group Faces Class Action Over IPO Misstatements
- Lawsuit Investigation Launched: Hagens Berman is notifying investors about the upcoming February 20, 2026 lead plaintiff deadline related to Klarna Group plc (NYSE: KLAR) and alleged misstatements in its September 2025 IPO documents.
- Credit Loss Surge: Shortly after the IPO, Klarna reported a staggering 102% year-over-year increase in its provision for credit losses, indicating serious flaws in its claimed credit modeling, which caused its stock price to drop nearly 22% below the IPO price.
- High-Risk Lending Allegations: The lawsuit alleges that Klarna's IPO documents failed to adequately disclose its aggressive lending practices to financially unsophisticated consumers, particularly through high-frequency, high-interest loans for non-durable goods like fast food.
- Investor Loss Warning: Hagens Berman urges investors who purchased Klarna shares following the September 2025 IPO and suffered significant losses to reach out for participation in the lawsuit and potential recovery of damages.
See More
Klarna Group Faces Class Action Lawsuit
- Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Klarna Group, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by February 20, 2026.
- IPO Underperformance: Klarna conducted its IPO on September 10, 2025, issuing 34,311,274 shares at $40 each, yet by December 22, 2025, the stock had fallen to $31.31, indicating market concerns regarding its financial stability.
- Escalating Financial Losses: Bloomberg reported that Klarna posted a net loss of $95 million in its latest earnings report, setting aside $235 million for potential credit losses, which represented 0.72% of gross merchandise volume, up from 0.44% a year prior, highlighting increasing credit risk.
- Customer Base Risks: Barron’s noted that Klarna's buy now, pay later model faces scrutiny due to its target demographic of younger individuals with lower financial security, higher debt burdens, and lower credit scores, potentially leading to increased loan default risks.
See More
Klarna Group Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Klarna Group plc, alleging violations of federal securities laws in connection with its September 10, 2025 IPO, seeking to recover damages for investors.
- False Statement Allegations: The complaint alleges that Klarna's registration statement contained false and misleading statements, failing to disclose the significant risk of increased loss reserves shortly after the IPO, which misled investors regarding the company's financial health.
- Investor Action: Affected investors are encouraged to apply to be lead plaintiffs by February 20, 2026, indicating the potential significant impact of this case on investors seeking recovery of losses.
- Legal Fee Arrangement: Bronstein, Gewirtz & Grossman, LLC will represent investors on a contingency fee basis, meaning they will only charge fees if they successfully recover funds, providing a no-risk legal support option for investors.
See More
Klarna Investors Encouraged to Contact Law Firm Over Losses
- Lawsuit Notification: Hagens Berman is notifying investors about the upcoming February 20, 2026, lead plaintiff deadline for Klarna Group plc (NYSE:KLAR), urging those who purchased shares during the September 2025 IPO and suffered losses to contact the firm.
- IPO Document Controversy: The firm is investigating alleged false statements in Klarna's IPO documents regarding credit modeling and scoring performance, particularly the omission of aggressive lending to financially unsophisticated consumers, which may have misled investors.
- Surge in Credit Losses: Just weeks after the IPO, Klarna reported a staggering 102% year-over-year increase in its credit loss provisions, raising serious questions about the transparency of its IPO documents and causing shares to plummet well below the $40 IPO price.
- Whistleblower Program: Hagens Berman encourages individuals with non-public information to consider participating in the investigation, as under the new whistleblower program, those providing original information may receive rewards of up to 30% of any successful SEC recovery, offering additional incentives for investors.
See More
Class Action Filed Against Klarna Group plc Over IPO Misleading Statements
- Class Action Initiated: Robbins LLP reminds all investors who purchased Klarna Group plc securities during its September 10, 2025 IPO that a class action has been filed, alleging misleading statements in the registration statement that may have led to investor losses.
- Allegations of Risk Concealment: The lawsuit claims that Klarna failed to disclose the significant risk of its loss reserves increasing substantially within months of the IPO, a critical piece of information that company executives likely knew or should have known.
- Stock Price Impact: As a result of undisclosed adverse facts, Klarna's stock price now trades significantly below its IPO price, which not only undermines investor confidence but could also have long-term repercussions on the company's market reputation.
- Investor Rights Protection: Investors can submit applications by February 20, 2026, to serve as lead plaintiffs in the class action, with Robbins LLP providing legal support on a contingency fee basis, aiming to help recover losses and improve corporate governance structures.
See More
Faruqi & Faruqi Encourages Klarna Investors to Reach Out
- Legal Investigation: Faruq & Faruq LLP is investigating potential claims against Klarna Group plc and reminds investors to seek lead plaintiff status by February 20, 2026, to participate in the federal securities class action against the company.
- Financial Loss Disclosure: Klarna's post-IPO earnings report revealed a record revenue but a net loss of $95 million due to increased loan loss provisions, with provisions rising from 0.44% to 0.72% of gross merchandise volume, indicating significant financial strain.
- Stock Price Impact: Following the earnings report on November 18, 2025, Klarna's stock fell by 9.3%, reflecting market concerns over the company's financial health, particularly in light of the substantial increase in loan loss provisions.
- Investor Rights Protection: Faruq & Faruq LLP encourages all individuals with information regarding Klarna's conduct, including whistleblowers and former employees, to come forward to ensure effective protection of investor rights.
See More
Klarna Group Faces Class Action Over IPO Misstatements
- Lawsuit Investigation Launched: Hagens Berman is notifying investors about the upcoming February 20, 2026 lead plaintiff deadline related to Klarna Group plc (NYSE: KLAR) and alleged misstatements in its September 2025 IPO documents.
- Credit Loss Surge: Shortly after the IPO, Klarna reported a staggering 102% year-over-year increase in its provision for credit losses, indicating serious flaws in its claimed credit modeling, which caused its stock price to drop nearly 22% below the IPO price.
- High-Risk Lending Allegations: The lawsuit alleges that Klarna's IPO documents failed to adequately disclose its aggressive lending practices to financially unsophisticated consumers, particularly through high-frequency, high-interest loans for non-durable goods like fast food.
- Investor Loss Warning: Hagens Berman urges investors who purchased Klarna shares following the September 2025 IPO and suffered significant losses to reach out for participation in the lawsuit and potential recovery of damages.
See More
Klarna Group Faces Class Action Lawsuit
- Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Klarna Group, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by February 20, 2026.
- IPO Underperformance: Klarna conducted its IPO on September 10, 2025, issuing 34,311,274 shares at $40 each, yet by December 22, 2025, the stock had fallen to $31.31, indicating market concerns regarding its financial stability.
- Escalating Financial Losses: Bloomberg reported that Klarna posted a net loss of $95 million in its latest earnings report, setting aside $235 million for potential credit losses, which represented 0.72% of gross merchandise volume, up from 0.44% a year prior, highlighting increasing credit risk.
- Customer Base Risks: Barron’s noted that Klarna's buy now, pay later model faces scrutiny due to its target demographic of younger individuals with lower financial security, higher debt burdens, and lower credit scores, potentially leading to increased loan default risks.
See More
Klarna Group Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Klarna Group plc, alleging violations of federal securities laws in connection with its September 10, 2025 IPO, seeking to recover damages for investors.
- False Statement Allegations: The complaint alleges that Klarna's registration statement contained false and misleading statements, failing to disclose the significant risk of increased loss reserves shortly after the IPO, which misled investors regarding the company's financial health.
- Investor Action: Affected investors are encouraged to apply to be lead plaintiffs by February 20, 2026, indicating the potential significant impact of this case on investors seeking recovery of losses.
- Legal Fee Arrangement: Bronstein, Gewirtz & Grossman, LLC will represent investors on a contingency fee basis, meaning they will only charge fees if they successfully recover funds, providing a no-risk legal support option for investors.
See More
Klarna Investors Encouraged to Contact Law Firm Over Losses
- Lawsuit Notification: Hagens Berman is notifying investors about the upcoming February 20, 2026, lead plaintiff deadline for Klarna Group plc (NYSE:KLAR), urging those who purchased shares during the September 2025 IPO and suffered losses to contact the firm.
- IPO Document Controversy: The firm is investigating alleged false statements in Klarna's IPO documents regarding credit modeling and scoring performance, particularly the omission of aggressive lending to financially unsophisticated consumers, which may have misled investors.
- Surge in Credit Losses: Just weeks after the IPO, Klarna reported a staggering 102% year-over-year increase in its credit loss provisions, raising serious questions about the transparency of its IPO documents and causing shares to plummet well below the $40 IPO price.
- Whistleblower Program: Hagens Berman encourages individuals with non-public information to consider participating in the investigation, as under the new whistleblower program, those providing original information may receive rewards of up to 30% of any successful SEC recovery, offering additional incentives for investors.
See More
Class Action Filed Against Klarna Group plc Over IPO Misleading Statements
- Class Action Initiated: Robbins LLP reminds all investors who purchased Klarna Group plc securities during its September 10, 2025 IPO that a class action has been filed, alleging misleading statements in the registration statement that may have led to investor losses.
- Allegations of Risk Concealment: The lawsuit claims that Klarna failed to disclose the significant risk of its loss reserves increasing substantially within months of the IPO, a critical piece of information that company executives likely knew or should have known.
- Stock Price Impact: As a result of undisclosed adverse facts, Klarna's stock price now trades significantly below its IPO price, which not only undermines investor confidence but could also have long-term repercussions on the company's market reputation.
- Investor Rights Protection: Investors can submit applications by February 20, 2026, to serve as lead plaintiffs in the class action, with Robbins LLP providing legal support on a contingency fee basis, aiming to help recover losses and improve corporate governance structures.
See More
