Investigation into Klarna's IPO Misstatements Intensifies Ahead of Class Action Deadline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy KLAR?
Source: Globenewswire
- Lawsuit Investigation Launched: Hagens Berman law firm is notifying investors about the upcoming February 20, 2026, lead plaintiff deadline in a class action against Klarna Group plc (NYSE: KLAR), focusing on 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 credit loss provisions, raising serious questions about its financial transparency and causing its stock price to plummet nearly 22% below the IPO price, severely undermining investor confidence.
- High-Risk Loan Allegations: The lawsuit alleges that Klarna's IPO documents materially understated the risks associated with lending to financially unsophisticated consumers, particularly through high-frequency, high-interest loans for non-durable goods like fast food, which increases the risk of defaults.
- Investor Loss Warning: Hagens Berman is urging investors who purchased Klarna shares during the September 2025 IPO and suffered significant losses to contact them to seek compensation in the upcoming class action lawsuit.
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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: 19.110
Low
36.00
Averages
44.36
High
55.00
Current: 19.110
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.
Investigation into Klarna's IPO Misstatements Intensifies Ahead of Class Action Deadline
- Lawsuit Investigation Launched: Hagens Berman law firm is notifying investors about the upcoming February 20, 2026, lead plaintiff deadline in a class action against Klarna Group plc (NYSE: KLAR), focusing on 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 credit loss provisions, raising serious questions about its financial transparency and causing its stock price to plummet nearly 22% below the IPO price, severely undermining investor confidence.
- High-Risk Loan Allegations: The lawsuit alleges that Klarna's IPO documents materially understated the risks associated with lending to financially unsophisticated consumers, particularly through high-frequency, high-interest loans for non-durable goods like fast food, which increases the risk of defaults.
- Investor Loss Warning: Hagens Berman is urging investors who purchased Klarna shares during the September 2025 IPO and suffered significant losses to contact them to seek compensation in the upcoming class action lawsuit.
See More
Klarna Group Shareholder Class Action Notice
- Lawsuit Background: The Gross Law Firm has issued a notice encouraging shareholders who purchased KLAR shares during the September 10, 2025 IPO to contact them for possible lead plaintiff appointment, indicating this case involves a class action lawsuit regarding Klarna securities.
- Allegations: The complaint alleges that Klarna failed to adequately disclose the significant risk of increased loss reserves shortly after the IPO, resulting in materially false and misleading public statements that could affect investor decisions during the relevant period.
- Participation Requirements: Shareholders must register by February 20, 2026, to participate in the lawsuit, and upon registration, they will receive portfolio monitoring services to keep them updated on the case's progress, thereby reducing information asymmetry risks.
- Law Firm's Strength: The Gross Law Firm is committed to protecting investor rights and emphasizes its expertise in handling fraud and illegal business practices, aiming to seek recovery for investors who suffered losses due to the company's misleading statements, thereby enhancing investor confidence.
See More
Reminder of Class Action Lawsuit Following Klarna IPO
- Class Action Notice: Glancy Prongay Wolke & Rotter LLP reminds investors that February 20, 2026, is the deadline to file a lead plaintiff motion in the class action lawsuit for Klarna Group plc, allowing investors to seek recovery for losses.
- IPO Performance Review: Klarna conducted its IPO on September 10, 2025, selling 34.3 million shares at $40 each, but the stock has significantly declined since then, resulting in substantial losses for investors.
- Financial Results Impact: On November 18, 2025, Klarna reported a 39% spike in credit loss provisions, causing a 9.3% drop in stock price to $31.63 per share, reflecting market concerns about its business outlook.
- Lawsuit Allegations: The complaint alleges that Klarna executives failed to disclose the risks associated with rising loss reserves, misleading investors about the company's business and prospects, which could affect future investment decisions.
See More
Faruqi & Faruqi Encourages Klarna Investors to Reach Out
- Legal Investigation: Faruq & Faruqi LLP is investigating potential claims against Klarna Group plc and reminds investors to seek lead plaintiff status in a federal securities class action by the February 20, 2026 deadline.
- Post-IPO Losses: Following its September 2025 IPO, Klarna failed to adequately disclose the risks associated with its loan loss reserves, resulting in investor losses when the true situation emerged, with a reported net loss of $95 million.
- Financial Data Disclosure: Klarna reported record revenue exceeding expectations in its first earnings report, yet increased its loan loss provisions to $235 million, surpassing analyst estimates of $215.8 million, indicating rising credit risk.
- Stock Price Volatility: Following the earnings report on November 18, 2025, Klarna's stock fell by 9.3%, reflecting market concerns over its financial health and diminishing investor confidence in the company's future.
See More
Reminder of Klarna Group Securities Class Action
- Class Action Notice: Rosen Law Firm reminds purchasers of Klarna Group (NYSE: KLAR) securities regarding a class action lawsuit related to the registration statement from its September 2025 IPO, with a lead plaintiff deadline of February 20, 2026, allowing investors to apply before this date.
- Fee Arrangement: Investors joining the Klarna class action will incur no out-of-pocket expenses, as the law firm operates on a contingency fee basis, ensuring compensation without upfront costs for the investors.
- Lawsuit Details: The lawsuit alleges that the registration statement contained false and misleading statements, failing to disclose the significant risk of increased loss reserves shortly after the IPO, which led to investor damages when the true information became public.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked first by ISS Securities Class Action Services in 2017, highlighting its extensive experience and success in this field.
See More
Class Action Lawsuit Filed Against Klarna's IPO
- Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit in the Eastern District of New York against Klarna on behalf of all investors who purchased its common stock during the IPO traceable to September 10, 2025, aiming to protect investor rights and seek compensation.
- False Statement Allegations: The lawsuit 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, resulting in investor losses when the true information became public.
- Stock Price Impact: Klarna successfully launched its IPO in September 2025, selling 34,311,274 shares at $40 each, but its Q3 2025 financial results revealed a substantial increase in credit loss provisions, causing the stock price to drop from $34.88 to $31.63 on November 18, 2025, a decline of approximately 9.3%.
- Investor Action Call: Investors who purchased Klarna shares during the IPO and suffered losses are urged to apply by February 20, 2026, to be appointed as lead plaintiffs in the lawsuit to protect their rights and potentially participate in compensation.
See More
Investigation into Klarna's IPO Misstatements Intensifies Ahead of Class Action Deadline
- Lawsuit Investigation Launched: Hagens Berman law firm is notifying investors about the upcoming February 20, 2026, lead plaintiff deadline in a class action against Klarna Group plc (NYSE: KLAR), focusing on 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 credit loss provisions, raising serious questions about its financial transparency and causing its stock price to plummet nearly 22% below the IPO price, severely undermining investor confidence.
- High-Risk Loan Allegations: The lawsuit alleges that Klarna's IPO documents materially understated the risks associated with lending to financially unsophisticated consumers, particularly through high-frequency, high-interest loans for non-durable goods like fast food, which increases the risk of defaults.
- Investor Loss Warning: Hagens Berman is urging investors who purchased Klarna shares during the September 2025 IPO and suffered significant losses to contact them to seek compensation in the upcoming class action lawsuit.
See More
Klarna Group Shareholder Class Action Notice
- Lawsuit Background: The Gross Law Firm has issued a notice encouraging shareholders who purchased KLAR shares during the September 10, 2025 IPO to contact them for possible lead plaintiff appointment, indicating this case involves a class action lawsuit regarding Klarna securities.
- Allegations: The complaint alleges that Klarna failed to adequately disclose the significant risk of increased loss reserves shortly after the IPO, resulting in materially false and misleading public statements that could affect investor decisions during the relevant period.
- Participation Requirements: Shareholders must register by February 20, 2026, to participate in the lawsuit, and upon registration, they will receive portfolio monitoring services to keep them updated on the case's progress, thereby reducing information asymmetry risks.
- Law Firm's Strength: The Gross Law Firm is committed to protecting investor rights and emphasizes its expertise in handling fraud and illegal business practices, aiming to seek recovery for investors who suffered losses due to the company's misleading statements, thereby enhancing investor confidence.
See More
Reminder of Class Action Lawsuit Following Klarna IPO
- Class Action Notice: Glancy Prongay Wolke & Rotter LLP reminds investors that February 20, 2026, is the deadline to file a lead plaintiff motion in the class action lawsuit for Klarna Group plc, allowing investors to seek recovery for losses.
- IPO Performance Review: Klarna conducted its IPO on September 10, 2025, selling 34.3 million shares at $40 each, but the stock has significantly declined since then, resulting in substantial losses for investors.
- Financial Results Impact: On November 18, 2025, Klarna reported a 39% spike in credit loss provisions, causing a 9.3% drop in stock price to $31.63 per share, reflecting market concerns about its business outlook.
- Lawsuit Allegations: The complaint alleges that Klarna executives failed to disclose the risks associated with rising loss reserves, misleading investors about the company's business and prospects, which could affect future investment decisions.
See More
Faruqi & Faruqi Encourages Klarna Investors to Reach Out
- Legal Investigation: Faruq & Faruqi LLP is investigating potential claims against Klarna Group plc and reminds investors to seek lead plaintiff status in a federal securities class action by the February 20, 2026 deadline.
- Post-IPO Losses: Following its September 2025 IPO, Klarna failed to adequately disclose the risks associated with its loan loss reserves, resulting in investor losses when the true situation emerged, with a reported net loss of $95 million.
- Financial Data Disclosure: Klarna reported record revenue exceeding expectations in its first earnings report, yet increased its loan loss provisions to $235 million, surpassing analyst estimates of $215.8 million, indicating rising credit risk.
- Stock Price Volatility: Following the earnings report on November 18, 2025, Klarna's stock fell by 9.3%, reflecting market concerns over its financial health and diminishing investor confidence in the company's future.
See More
Reminder of Klarna Group Securities Class Action
- Class Action Notice: Rosen Law Firm reminds purchasers of Klarna Group (NYSE: KLAR) securities regarding a class action lawsuit related to the registration statement from its September 2025 IPO, with a lead plaintiff deadline of February 20, 2026, allowing investors to apply before this date.
- Fee Arrangement: Investors joining the Klarna class action will incur no out-of-pocket expenses, as the law firm operates on a contingency fee basis, ensuring compensation without upfront costs for the investors.
- Lawsuit Details: The lawsuit alleges that the registration statement contained false and misleading statements, failing to disclose the significant risk of increased loss reserves shortly after the IPO, which led to investor damages when the true information became public.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked first by ISS Securities Class Action Services in 2017, highlighting its extensive experience and success in this field.
See More
Class Action Lawsuit Filed Against Klarna's IPO
- Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit in the Eastern District of New York against Klarna on behalf of all investors who purchased its common stock during the IPO traceable to September 10, 2025, aiming to protect investor rights and seek compensation.
- False Statement Allegations: The lawsuit 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, resulting in investor losses when the true information became public.
- Stock Price Impact: Klarna successfully launched its IPO in September 2025, selling 34,311,274 shares at $40 each, but its Q3 2025 financial results revealed a substantial increase in credit loss provisions, causing the stock price to drop from $34.88 to $31.63 on November 18, 2025, a decline of approximately 9.3%.
- Investor Action Call: Investors who purchased Klarna shares during the IPO and suffered losses are urged to apply by February 20, 2026, to be appointed as lead plaintiffs in the lawsuit to protect their rights and potentially participate in compensation.
See More
