Klarna Class Action Lawsuit Initiated Post-IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Class Action Initiation: Klarna Group plc faces a class action lawsuit related to its September 10, 2025 IPO, with investors able to apply as lead plaintiffs by February 20, 2026, alleging significant false and misleading information in its IPO documents.
- Poor IPO Performance: Klarna issued approximately 34 million shares at $40 each during its IPO, but by the time the lawsuit commenced, its stock price had fallen to $31.31, indicating market concerns about its financial health.
- Insufficient Risk Disclosure: The lawsuit claims that Klarna failed to adequately disclose the risks associated with its loan loss reserves, leading investors to face heightened loss risks shortly after the IPO, which negatively impacted investor confidence and the company's reputation.
- Legal Representation: Robbins Geller Rudman & Dowd LLP, a leading law firm representing investors, has been ranked as the top firm for securing the most monetary relief for investors in securities class actions four out of the last five years, demonstrating its expertise in handling such cases.
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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: 25.500
Low
36.00
Averages
44.36
High
55.00
Current: 25.500
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.
Klarna to Release Q4 2025 Earnings on February 19, 2026
- Earnings Release Schedule: Klarna will publish its Q4 2025 earnings on February 19, 2026, before market open, demonstrating the company's commitment to transparency and investor communication.
- Webcast Timing: Following the earnings release, Klarna will host a webcast at 8:30 a.m. ET, providing real-time insights into financial results and enhancing investor engagement.
- Shareholder Question Opportunity: In partnership with Say Technologies, Klarna allows shareholders to submit questions ahead of the earnings call, increasing shareholder interaction and ensuring transparency.
- Verification Process: Shareholders must go through Say's secure verification process to submit questions, ensuring that only verified shareholders can participate, reflecting the company's commitment to shareholder rights.
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Klarna Class Action Lawsuit Initiated Post-IPO
- Class Action Initiation: Klarna Group plc faces a class action lawsuit related to its September 10, 2025 IPO, with investors able to apply as lead plaintiffs by February 20, 2026, alleging significant false and misleading information in its IPO documents.
- Poor IPO Performance: Klarna issued approximately 34 million shares at $40 each during its IPO, but by the time the lawsuit commenced, its stock price had fallen to $31.31, indicating market concerns about its financial health.
- Insufficient Risk Disclosure: The lawsuit claims that Klarna failed to adequately disclose the risks associated with its loan loss reserves, leading investors to face heightened loss risks shortly after the IPO, which negatively impacted investor confidence and the company's reputation.
- Legal Representation: Robbins Geller Rudman & Dowd LLP, a leading law firm representing investors, has been ranked as the top firm for securing the most monetary relief for investors in securities class actions four out of the last five years, demonstrating its expertise in handling such cases.
Continue Reading