Reminder of Securities Class Action Against Klarna Group
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy KLAR?
Source: Businesswire
- Litigation Deadline: Investors must file lead plaintiff applications in the securities class action against Klarna Group by February 20, 2026, related to the September 2025 IPO, which could affect their rights to recover losses.
- Overview of Allegations: Klarna and certain executives are accused of failing to disclose material information in the Registration Statement, violating federal securities laws, including underestimating the risk of significant increases in loss reserves shortly after the IPO, leading to investor losses.
- Investor Damages: The lawsuit claims that Klarna's false and misleading statements resulted in economic damages for investors when the true details emerged, potentially impacting the company's reputation and future financing capabilities.
- Law Firm Background: Kahn Swick & Foti, LLC is a premier securities litigation law firm ranked among the top ten nationally based on total settlement value last year, focusing on recovering investment losses for clients due to corporate fraud or misconduct.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy KLAR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 18.110
Low
36.00
Averages
44.36
High
55.00
Current: 18.110
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 Sees Rapid User Growth with Promising Path to Profitability
- Significant User Growth: Klarna added 27 million new users in Q3, a 32% year-over-year increase, bringing the total to 114 million, demonstrating the strong appeal of its buy now, pay later services and solidifying its market position.
- Sustained Revenue Growth: Revenue increased by 26% year-over-year in Q3, with a remarkable 48% growth in gross merchandise volume in the U.S., indicating rising consumer demand for Klarna's services and a promising path to profitability.
- Merchant Partnerships Expansion: The number of merchants using Klarna surged by 38% to 850,000, reflecting its growing influence in the retail sector, particularly with its exclusive partnership with Walmart, which enhances its competitive edge.
- Financial Challenges and Opportunities: Despite a widening net loss from $4 million to $94 million in Q3, management asserts that revenue is growing faster than operating expenses, indicating potential for profitability, with investors advised to watch for the upcoming business update on February 19.
See More
Reminder of Securities Class Action Against Klarna Group
- Litigation Deadline: Investors must file lead plaintiff applications in the securities class action against Klarna Group by February 20, 2026, related to the September 2025 IPO, which could affect their rights to recover losses.
- Overview of Allegations: Klarna and certain executives are accused of failing to disclose material information in the Registration Statement, violating federal securities laws, including underestimating the risk of significant increases in loss reserves shortly after the IPO, leading to investor losses.
- Investor Damages: The lawsuit claims that Klarna's false and misleading statements resulted in economic damages for investors when the true details emerged, potentially impacting the company's reputation and future financing capabilities.
- Law Firm Background: Kahn Swick & Foti, LLC is a premier securities litigation law firm ranked among the top ten nationally based on total settlement value last year, focusing on recovering investment losses for clients due to corporate fraud or misconduct.
See More
Reminder of Klarna Group Securities Fraud Lawsuit
- Post-IPO Stock Plunge: Klarna conducted its IPO on September 10, 2025, selling 34.3 million shares at $40 each, but on November 18, 2025, it reported a 39% spike in credit loss provisions, causing its stock to plummet by $3.25, or 9.3%, to close at $31.63, severely impacting investors.
- Lawsuit Allegations of Misrepresentation: The class action lawsuit alleges that Klarna and its executives failed to disclose significant adverse facts about the company's business and prospects, particularly underestimating the risk of a substantial increase in loss reserves shortly after the IPO, which misled investors regarding the company's outlook.
- Severe Investor Losses: Since the IPO, Klarna's share price has remained significantly below its offering price, resulting in substantial financial losses for investors, with the lawsuit aiming to seek compensation for affected investors and highlighting the company's disclosure responsibilities.
- Deadline for Lawsuit Participation: Investors must apply to be lead plaintiffs in the securities fraud class action by February 20, 2026, serving as a reminder for affected investors to take timely action to protect their rights.
See More
Reminder for Klarna Group Securities Class Action
- Class Action Notice: Rosen Law Firm reminds purchasers of Klarna Group securities regarding a class action lawsuit related to the September 2025 IPO, with a lead plaintiff deadline of February 20, 2026, allowing investors to apply to serve as lead plaintiff by this date.
- Fee Arrangement: Investors participating in the class action can do so without any upfront costs, as the law firm operates on a contingency fee basis, thereby reducing the financial burden on investors.
- Lawsuit Details: The lawsuit alleges that Klarna's registration statement contained false and misleading statements, failing to disclose that the risk of loss reserves would significantly increase within months of the IPO, resulting in investor losses once the true information became public.
- Law Firm Background: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first in 2017 for the number of securities class action settlements, highlighting its expertise and successful track record in this field.
See More
Klarna Group Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Klarna Group plc, alleging violations of federal securities laws in connection with its September 10, 2025 IPO, seeking to recover damages for investors.
- False Statement Allegations: The complaint claims that Klarna's registration statement contained false and misleading statements, failing 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.
- Law Firm's Strength: Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm specializing in securities fraud class actions, having recovered hundreds of millions for investors, emphasizing its role in maintaining market integrity.
See More
Reminder of Class Action Lawsuits for Shareholders of Multiple Companies
- F5 Lawsuit: F5, Inc. (NASDAQ:FFIV) faces a class action lawsuit for the period from October 28, 2024, to October 27, 2025, due to undisclosed significant security incidents, which severely undermined investor confidence in the company's future prospects.
- SLM Issues: SLM Corporation (NASDAQ:SLM) is involved in a class action lawsuit for the period from July 25, 2025, to August 14, 2025, as it failed to disclose a significant rise in early-stage delinquencies, raising doubts among investors regarding the effectiveness of its loss mitigation programs and damaging its market reputation.
- Charming Medical Fraud: Charming Medical Limited (NASDAQ:MCTA) is implicated in a class action lawsuit for the period from October 10, 2025, to November 12, 2025, due to involvement in a fraudulent stock promotion scheme, which significantly harmed investor interests and eroded shareholder trust in the company.
- Klarna Group Risks: Klarna Group plc (NYSE:KLAR) is facing a class action lawsuit for the period from September 7, 2025, to December 22, 2025, as it failed to disclose the understated risk of its loss reserves, which could impact investor confidence in its buy now, pay later loans and potentially affect future financing capabilities.
See More
Klarna Sees Rapid User Growth with Promising Path to Profitability
- Significant User Growth: Klarna added 27 million new users in Q3, a 32% year-over-year increase, bringing the total to 114 million, demonstrating the strong appeal of its buy now, pay later services and solidifying its market position.
- Sustained Revenue Growth: Revenue increased by 26% year-over-year in Q3, with a remarkable 48% growth in gross merchandise volume in the U.S., indicating rising consumer demand for Klarna's services and a promising path to profitability.
- Merchant Partnerships Expansion: The number of merchants using Klarna surged by 38% to 850,000, reflecting its growing influence in the retail sector, particularly with its exclusive partnership with Walmart, which enhances its competitive edge.
- Financial Challenges and Opportunities: Despite a widening net loss from $4 million to $94 million in Q3, management asserts that revenue is growing faster than operating expenses, indicating potential for profitability, with investors advised to watch for the upcoming business update on February 19.
See More
Reminder of Securities Class Action Against Klarna Group
- Litigation Deadline: Investors must file lead plaintiff applications in the securities class action against Klarna Group by February 20, 2026, related to the September 2025 IPO, which could affect their rights to recover losses.
- Overview of Allegations: Klarna and certain executives are accused of failing to disclose material information in the Registration Statement, violating federal securities laws, including underestimating the risk of significant increases in loss reserves shortly after the IPO, leading to investor losses.
- Investor Damages: The lawsuit claims that Klarna's false and misleading statements resulted in economic damages for investors when the true details emerged, potentially impacting the company's reputation and future financing capabilities.
- Law Firm Background: Kahn Swick & Foti, LLC is a premier securities litigation law firm ranked among the top ten nationally based on total settlement value last year, focusing on recovering investment losses for clients due to corporate fraud or misconduct.
See More
Reminder of Klarna Group Securities Fraud Lawsuit
- Post-IPO Stock Plunge: Klarna conducted its IPO on September 10, 2025, selling 34.3 million shares at $40 each, but on November 18, 2025, it reported a 39% spike in credit loss provisions, causing its stock to plummet by $3.25, or 9.3%, to close at $31.63, severely impacting investors.
- Lawsuit Allegations of Misrepresentation: The class action lawsuit alleges that Klarna and its executives failed to disclose significant adverse facts about the company's business and prospects, particularly underestimating the risk of a substantial increase in loss reserves shortly after the IPO, which misled investors regarding the company's outlook.
- Severe Investor Losses: Since the IPO, Klarna's share price has remained significantly below its offering price, resulting in substantial financial losses for investors, with the lawsuit aiming to seek compensation for affected investors and highlighting the company's disclosure responsibilities.
- Deadline for Lawsuit Participation: Investors must apply to be lead plaintiffs in the securities fraud class action by February 20, 2026, serving as a reminder for affected investors to take timely action to protect their rights.
See More
Reminder for Klarna Group Securities Class Action
- Class Action Notice: Rosen Law Firm reminds purchasers of Klarna Group securities regarding a class action lawsuit related to the September 2025 IPO, with a lead plaintiff deadline of February 20, 2026, allowing investors to apply to serve as lead plaintiff by this date.
- Fee Arrangement: Investors participating in the class action can do so without any upfront costs, as the law firm operates on a contingency fee basis, thereby reducing the financial burden on investors.
- Lawsuit Details: The lawsuit alleges that Klarna's registration statement contained false and misleading statements, failing to disclose that the risk of loss reserves would significantly increase within months of the IPO, resulting in investor losses once the true information became public.
- Law Firm Background: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first in 2017 for the number of securities class action settlements, highlighting its expertise and successful track record in this field.
See More
Klarna Group Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Klarna Group plc, alleging violations of federal securities laws in connection with its September 10, 2025 IPO, seeking to recover damages for investors.
- False Statement Allegations: The complaint claims that Klarna's registration statement contained false and misleading statements, failing 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.
- Law Firm's Strength: Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm specializing in securities fraud class actions, having recovered hundreds of millions for investors, emphasizing its role in maintaining market integrity.
See More
Reminder of Class Action Lawsuits for Shareholders of Multiple Companies
- F5 Lawsuit: F5, Inc. (NASDAQ:FFIV) faces a class action lawsuit for the period from October 28, 2024, to October 27, 2025, due to undisclosed significant security incidents, which severely undermined investor confidence in the company's future prospects.
- SLM Issues: SLM Corporation (NASDAQ:SLM) is involved in a class action lawsuit for the period from July 25, 2025, to August 14, 2025, as it failed to disclose a significant rise in early-stage delinquencies, raising doubts among investors regarding the effectiveness of its loss mitigation programs and damaging its market reputation.
- Charming Medical Fraud: Charming Medical Limited (NASDAQ:MCTA) is implicated in a class action lawsuit for the period from October 10, 2025, to November 12, 2025, due to involvement in a fraudulent stock promotion scheme, which significantly harmed investor interests and eroded shareholder trust in the company.
- Klarna Group Risks: Klarna Group plc (NYSE:KLAR) is facing a class action lawsuit for the period from September 7, 2025, to December 22, 2025, as it failed to disclose the understated risk of its loss reserves, which could impact investor confidence in its buy now, pay later loans and potentially affect future financing capabilities.
See More
