Klarna Group (KLAR) Faces Class Action Over IPO Misstatements, Deadline Approaches
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Globenewswire
- Lawsuit Notification: Hagens Berman is notifying investors that the lead plaintiff deadline for the pending securities class action against Klarna Group plc (NYSE: KLAR) is February 20, 2026, urging affected investors to act promptly to protect their rights.
- IPO Document Issues: The lawsuit alleges that Klarna's September 2025 IPO documents contained misleading statements, particularly underestimating credit loss reserves and 'Fair Financing' risks, potentially leading to significant investor losses.
- Financial Loss Exposure: Klarna reported a staggering 102% year-over-year increase in credit loss provisions and a material rise in operating losses in its Q3 2025 results released on November 18, 2025, causing its stock price to plummet nearly 22% below its IPO price, severely impacting investor confidence.
- Disclosure of Risks: Reed Kathrein, a partner at Hagens Berman, stated that Klarna's IPO documents failed to adequately disclose credit risks, emphasizing that investors deserve to know if these risks were known but omitted prior to the IPO, which could have influenced their investment decisions.
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: 30.130
Low
39.00
Averages
47.53
High
55.00
Current: 30.130
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.
