Klarna Group Faces Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Globenewswire
- Class Action Initiated: The Schall Law Firm has filed a class action lawsuit against Klarna Group, alleging violations of federal securities laws during its IPO on September 10, 2025, which undermines investor confidence.
- False Statements Revealed: The complaint claims that Klarna downplayed the risk of significant increases in loss reserves during the IPO period, leading to investor losses when the truth emerged, highlighting serious deficiencies in the company's disclosures.
- Investor Rights Protection: The Schall Law Firm urges investors who purchased Klarna securities before February 20, 2026, to contact them to participate in the lawsuit and seek compensation for losses, demonstrating a commitment to protecting investor rights.
- Lawsuit Not Certified: The class action has not yet been certified by the court, meaning investors are not represented by an attorney during this period, emphasizing the importance of participating in the lawsuit to safeguard their 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: 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.
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 Group Faces Class Action Lawsuit
- Lawsuit Background: Klarna Group is facing a class action lawsuit initiated by Kahn Swick & Foti, LLC for failing to disclose critical information during its September 2025 IPO, which allegedly violates federal securities laws and resulted in investor losses.
- Loss Allegations: The lawsuit claims that Klarna and certain executives failed to accurately disclose the risk of a significant increase in loss reserves shortly after the IPO, leading to substantial damages for investors, with public statements deemed materially false and misleading during the relevant period.
- Investor Action: Affected Klarna investors have until February 20, 2026, to request appointment as lead plaintiff, although serving in this capacity is not a prerequisite for sharing in any potential recovery, thus providing a legal avenue for affected parties.
- Law Firm Background: Kahn Swick & Foti, LLC is recognized as one of the premier securities litigation law firms in the U.S., ranked among the top ten nationally based on total settlement value in the past year, focusing on legal support for investors suffering losses due to corporate fraud or misconduct.
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