Klarna Group Faces Class Action Lawsuit as Shares Drop to $31.31
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Class Action Filed: Berger Montague has initiated a class action lawsuit against Klarna Group on behalf of investors who acquired securities between September 7 and December 22, 2025, alleging that the IPO registration statement materially understated risks, potentially leading to investor losses.
- Stock Price Decline: Klarna's shares have fallen from their IPO price of $40 to approximately $31.31, indicating market concerns regarding its financial health, particularly given the high-risk profile of many customers facing financial hardships.
- Investor Deadline: Investors must seek to be appointed as lead plaintiff representatives by February 20, 2026, highlighting the urgency for affected parties to engage in the legal process, which could influence the outcome of the case.
- Law Firm Background: Berger Montague specializes in complex civil litigation and class actions, having recovered over $50 billion for clients over 55 years, underscoring its significant expertise and influence in the legal field.
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: 27.400
Low
36.00
Averages
44.36
High
55.00
Current: 27.400
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.
