Klarna Files Antitrust Lawsuit Against Google for $8.3 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy KLAR?
Source: Businesswire
- Record Lawsuit Amount: Klarna's subsidiary PriceRunner International AB has filed an antitrust lawsuit against Google seeking approximately $8.3 billion in damages, marking the largest civil damages claim in Swedish court history, which underscores Klarna's strong stance in market competition.
- Case Background: The lawsuit stems from Google's abuse of dominance in online comparison shopping, as established by the European Commission in a 2017 decision, and further upheld by the Court of Justice of the European Union in 2024, indicating that Google's actions have caused long-term commercial harm to competitors.
- Legal Uncertainty: Despite the substantial claim amount, the outcome of the proceedings is inherently uncertain, with no assurance that PriceRunner will succeed on liability or quantum, and any award would be subject to Google's appeal, increasing investor risk.
- Klarna's Market Position: As a global digital bank and flexible payments provider, Klarna boasts over 118 million active users and 3.4 million transactions per day, with its innovative payment solutions trusted by over 966,000 retailers, highlighting its significance and influence in the global market.
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Analyst Views on KLAR
Wall Street analysts forecast KLAR stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 12.820
Low
36.00
Averages
44.36
High
55.00
Current: 12.820
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 Files Antitrust Lawsuit Against Google for $8.3 Billion
- Record Lawsuit Amount: Klarna's subsidiary PriceRunner International AB has filed an antitrust lawsuit against Google seeking approximately $8.3 billion in damages, marking the largest civil damages claim in Swedish court history, which underscores Klarna's strong stance in market competition.
- Case Background: The lawsuit stems from Google's abuse of dominance in online comparison shopping, as established by the European Commission in a 2017 decision, and further upheld by the Court of Justice of the European Union in 2024, indicating that Google's actions have caused long-term commercial harm to competitors.
- Legal Uncertainty: Despite the substantial claim amount, the outcome of the proceedings is inherently uncertain, with no assurance that PriceRunner will succeed on liability or quantum, and any award would be subject to Google's appeal, increasing investor risk.
- Klarna's Market Position: As a global digital bank and flexible payments provider, Klarna boasts over 118 million active users and 3.4 million transactions per day, with its innovative payment solutions trusted by over 966,000 retailers, highlighting its significance and influence in the global market.
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Klarna Group Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Klarna Group plc and certain officers for alleged violations of federal securities laws related to securities purchased during the September 10, 2025 IPO.
- False Statement Allegations: The complaint alleges that the registration statement contained false and/or misleading statements and failed to disclose the significant risk of increased loss reserves shortly after the IPO, misleading investors about the company's financial health.
- Investor Actions: Affected investors are encouraged to apply to be lead plaintiffs by February 20, 2026, allowing them to participate in any potential recovery without needing to serve as lead plaintiffs.
- Legal Fee Arrangement: Bronstein, Gewirtz & Grossman, LLC offers a no-cost legal service to investors, only seeking reimbursement for expenses and attorney fees from the court if they successfully recover funds, ensuring investor interests are protected.
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- Texas Roadhouse Strong Performance: Texas Roadhouse shares rose over 3% in early trading, as the market overlooked a weak fourth quarter due to a strong start in Q1, indicating sustained consumer demand for dining despite ongoing beef inflation challenges.
- Klarna's Disappointing Earnings: Klarna reported a wider-than-expected net loss for the quarter, and its fiscal 2026 outlook fell short across key metrics, prompting JPMorgan and UBS to cut their price targets to $20, reflecting market concerns about its future performance.
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Klarna Reports Significant Q4 Net Loss Amid Weaker Guidance
- Disappointing Earnings: Klarna reported a Q4 net loss of $26 million, a stark contrast to a $40 million profit a year earlier, significantly exceeding the market's expectation of an $8.8 million loss, indicating severe challenges to the company's profitability.
- Weak Revenue Growth: Although Klarna's revenue rose 38% to $1.08 billion, slightly above estimates, the overall financial performance was negatively impacted by transaction margins falling short of expectations, leading to a substantial drop in stock price post-earnings.
- Divergent Analyst Ratings: Keefe Bruyette raised Klarna's price target to $26, while Morgan Stanley cut its target to $16, reflecting differing market views on Klarna's future profitability, especially as the company needs to focus on improving its earnings.
- Market Sentiment Shift: Despite a 27% drop in Klarna's stock price following the earnings report, retail investor sentiment on Stocktwits turned 'extremely bullish', with message volumes surging by 1,640%, indicating expectations for a short-term rebound.
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Investigation into Klarna's IPO Misstatements
- Lawsuit Investigation Initiated: Hagens Berman law firm is notifying investors about an investigation into Klarna Group plc (NYSE:KLAR) regarding alleged misstatements in its September 2025 IPO documents, with a lead plaintiff deadline set for February 20, 2026.
- Investor Loss Warning: Investors who purchased Klarna shares and suffered significant losses are encouraged to contact the firm, as the IPO documents allegedly misled investors by failing to disclose the company's aggressive lending practices to financially unsophisticated consumers.
- Surge in Credit Losses: Shortly 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 its stock price to plummet well below the $40 IPO price.
- Legal Accountability Pursuit: Hagens Berman is recognized for its success in prosecuting securities fraud class actions and is actively advising investors on pursuing losses related to Klarna's IPO, highlighting a strong commitment to corporate transparency and accountability.
See More
Klarna Files Antitrust Lawsuit Against Google for $8.3 Billion
- Record Lawsuit Amount: Klarna's subsidiary PriceRunner International AB has filed an antitrust lawsuit against Google seeking approximately $8.3 billion in damages, marking the largest civil damages claim in Swedish court history, which underscores Klarna's strong stance in market competition.
- Case Background: The lawsuit stems from Google's abuse of dominance in online comparison shopping, as established by the European Commission in a 2017 decision, and further upheld by the Court of Justice of the European Union in 2024, indicating that Google's actions have caused long-term commercial harm to competitors.
- Legal Uncertainty: Despite the substantial claim amount, the outcome of the proceedings is inherently uncertain, with no assurance that PriceRunner will succeed on liability or quantum, and any award would be subject to Google's appeal, increasing investor risk.
- Klarna's Market Position: As a global digital bank and flexible payments provider, Klarna boasts over 118 million active users and 3.4 million transactions per day, with its innovative payment solutions trusted by over 966,000 retailers, highlighting its significance and influence in the global market.
See More
Top 3 Expected IPOs to Watch in 2026
IPO Landscape Changes: The IPO landscape has shifted from a focus on tech companies, particularly fintech, to a broader range of sectors, with notable companies like OpenAI and SpaceX preparing for public listings.
Anticipated IPOs: Companies such as Canva and Anthropic are rumored to be eyeing IPOs, with Canva potentially valued at $42 billion and Anthropic expected to file for an IPO in 2026, aiming to capitalize on its rapid growth.
Discord's Growth: Discord has seen significant growth, especially during the pandemic, expanding its user base from 11 million in 2016 to 656 million active users today, and is reportedly preparing for a $15 billion IPO in 2026.
Fintech Trends: The fintech sector continues to thrive, with companies like Plaid and Klarna leading the way. Plaid, which connects financial accounts to apps, is projected to have over 150 million global consumers using its services by early 2026.
See More
Klarna Group Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Klarna Group plc and certain officers for alleged violations of federal securities laws related to securities purchased during the September 10, 2025 IPO.
- False Statement Allegations: The complaint alleges that the registration statement contained false and/or misleading statements and failed to disclose the significant risk of increased loss reserves shortly after the IPO, misleading investors about the company's financial health.
- Investor Actions: Affected investors are encouraged to apply to be lead plaintiffs by February 20, 2026, allowing them to participate in any potential recovery without needing to serve as lead plaintiffs.
- Legal Fee Arrangement: Bronstein, Gewirtz & Grossman, LLC offers a no-cost legal service to investors, only seeking reimbursement for expenses and attorney fees from the court if they successfully recover funds, ensuring investor interests are protected.
See More
Market Dynamics and Investment Opportunities Analysis
- Blue Owl Capital Loan Sales: Blue Owl Capital's loan sales are part of a plan to return capital to investors, and while observers have raised 'canary in the coal mine' warnings regarding mispriced private credit loans, the situation does not appear tragic, potentially offering market opportunities.
- Weak U.S. GDP: The preliminary fourth-quarter U.S. GDP growth came in at just 1.4%, significantly below expectations, with the government shutdown likely dragging on growth, leading to market concerns about future economic recovery challenges.
- Texas Roadhouse Strong Performance: Texas Roadhouse shares rose over 3% in early trading, as the market overlooked a weak fourth quarter due to a strong start in Q1, indicating sustained consumer demand for dining despite ongoing beef inflation challenges.
- Klarna's Disappointing Earnings: Klarna reported a wider-than-expected net loss for the quarter, and its fiscal 2026 outlook fell short across key metrics, prompting JPMorgan and UBS to cut their price targets to $20, reflecting market concerns about its future performance.
See More
Klarna Reports Significant Q4 Net Loss Amid Weaker Guidance
- Disappointing Earnings: Klarna reported a Q4 net loss of $26 million, a stark contrast to a $40 million profit a year earlier, significantly exceeding the market's expectation of an $8.8 million loss, indicating severe challenges to the company's profitability.
- Weak Revenue Growth: Although Klarna's revenue rose 38% to $1.08 billion, slightly above estimates, the overall financial performance was negatively impacted by transaction margins falling short of expectations, leading to a substantial drop in stock price post-earnings.
- Divergent Analyst Ratings: Keefe Bruyette raised Klarna's price target to $26, while Morgan Stanley cut its target to $16, reflecting differing market views on Klarna's future profitability, especially as the company needs to focus on improving its earnings.
- Market Sentiment Shift: Despite a 27% drop in Klarna's stock price following the earnings report, retail investor sentiment on Stocktwits turned 'extremely bullish', with message volumes surging by 1,640%, indicating expectations for a short-term rebound.
See More
Investigation into Klarna's IPO Misstatements
- Lawsuit Investigation Initiated: Hagens Berman law firm is notifying investors about an investigation into Klarna Group plc (NYSE:KLAR) regarding alleged misstatements in its September 2025 IPO documents, with a lead plaintiff deadline set for February 20, 2026.
- Investor Loss Warning: Investors who purchased Klarna shares and suffered significant losses are encouraged to contact the firm, as the IPO documents allegedly misled investors by failing to disclose the company's aggressive lending practices to financially unsophisticated consumers.
- Surge in Credit Losses: Shortly 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 its stock price to plummet well below the $40 IPO price.
- Legal Accountability Pursuit: Hagens Berman is recognized for its success in prosecuting securities fraud class actions and is actively advising investors on pursuing losses related to Klarna's IPO, highlighting a strong commitment to corporate transparency and accountability.
See More
