Klarna Group Faces Securities Class Action Over Understated Risks and Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Lawsuit Deadline: Investors must file lead plaintiff applications in the securities class action against Klarna Group by February 20, 2026, if they purchased the company's securities during the September 2025 IPO, providing them an opportunity to seek recovery for economic losses.
- Legal Allegations: Klarna and certain executives are accused of failing to disclose material information during the class period, violating federal securities laws, particularly by understating the risk of significant increases in loss reserves shortly after the IPO, which led to investor losses.
- Investor Damages: The lawsuit claims that Klarna's false and misleading statements resulted in damages for investors when the true details emerged, highlighting the company's inadequate risk management in its buy now, pay later (BNPL) loan business.
- Law Firm Background: Kahn Swick & Foti, LLC is a prominent securities litigation law firm ranked among the top ten nationally for class action settlements, focusing on providing legal support to clients suffering investment losses due to corporate fraud or misconduct.
KLAR
$30.64+Infinity%1D
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 47.53 USD with a low forecast of 39.00 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.
16 Analyst Rating
13 Buy
3 Hold
0 Sell
Strong Buy
Current: 31.310
Low
39.00
Averages
47.53
High
55.00
Current: 31.310
Low
39.00
Averages
47.53
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.
