Klarna Investors Reminded of Class Action Deadline Post-IPO

Written by Emily J. Thompson, Senior Investment Analyst

Source: Globenewswire

Updated: 2d ago

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KLAR+0.84%

Should l Buy KLAR?

Source: Globenewswire

Class Action Reminder: Glancy Prongay Wolke & Rotter LLP reminds investors that February 20, 2026, is the deadline to file a lead plaintiff motion in the class action concerning losses incurred after Klarna Group plc's IPO in September 2025.
IPO Performance Review: Klarna went public on September 10, 2025, selling 34.3 million shares at $40 each, but since then, the stock has significantly declined, currently closing at $31.63, representing a 21% drop from the IPO price.
Financial Loss Disclosure: On November 18, 2025, Klarna reported a 39% spike in credit loss provisions due to changes in market and product mix, causing the stock to drop 9.3% on the same day, exacerbating investor losses.
Lawsuit Allegations: The complaint alleges that Klarna executives failed to disclose the risks associated with rising loss reserves, misleading investors about the company's business outlook and potentially exposing them to greater financial risks.

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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: 20.350

Low

36.00

Averages

44.36

High

55.00

Current: 20.350

Low

36.00

Averages

44.36

High

55.00

Keefe Bruyette

Outperform -> Outperform

downgrade

$52 -> $45

2026-01-02

Reason

Keefe Bruyette

Price Target

$52 -> $45

AI Analysis

2026-01-02

downgrade

Outperform -> Outperform

Reason

Keefe Bruyette lowered the firm's price target on Klarna to $45 from $52 and keeps an Outperform rating on the shares. The firm adjusted price targets in consumer finance and payments groups.

Citi

Buy

downgrade

$58 -> $45

2025-11-20

Reason

Citi

Price Target

$58 -> $45

2025-11-20

downgrade

Buy

Reason

Citi lowered the firm's price target on Klarna to $45 from $58 and keeps a Buy rating on the shares. the firm dropped the target post the earnings report but believes Klarna continues to see "outsized growth" across its business.

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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.

Reminder of Klarna Group Securities Class Action

17 hours agoGlobenewswire

Class Action Notice: Rosen Law Firm reminds purchasers of Klarna Group securities that the lead plaintiff deadline for the class action related to the September 2025 IPO is set for February 20, 2026, urging investors to act promptly to participate in the litigation.
Potential Compensation Opportunity: Investors who purchased Klarna securities may be entitled to compensation without any upfront costs through a contingency fee arrangement, providing a risk-free legal support mechanism that encourages more affected individuals to join the lawsuit.
Overview of the Lawsuit: The lawsuit alleges that the Registration Statement contained false and misleading statements, failing to disclose the significant risk of Klarna's loss reserves increasing shortly after the IPO, resulting in investor losses once the true information became public.
Law Firm Background: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its strong capabilities and successful track record in this field.

Klarna Group Faces Securities Class Action Lawsuit

2 days agoPRnewswire

Lawsuit Deadline: ClaimsFiler reminds investors of Klarna Group that they must file lead plaintiff applications by February 20, 2026, to participate in a securities class action lawsuit stemming from the company's September 2025 IPO.
Legal Allegations: Klarna and certain executives are accused of failing to disclose material information during the class period, violating federal securities laws, particularly underestimating the risk of significant increases in loss reserves shortly after the IPO.
Investor Losses: The lawsuit claims that due to materially false and misleading public statements by Klarna, investors suffered damages when the true details emerged, highlighting serious deficiencies in the company's risk management practices.
Legal Support Channels: Investors can visit ClaimsFiler for information, register to submit claims timely, and contact Kahn Swick & Foti, LLC for legal consultations, demonstrating a commitment to protecting investor rights.

Class Action Lawsuit Filed Against Klarna Following IPO Losses

2 days agoGlobenewswire

Class Action Initiated: Bragar Eagel & Squire has filed a class action lawsuit against Klarna in the U.S. District Court for the Eastern District of New York on behalf of investors who purchased shares during the September 10, 2025 IPO, raising serious concerns about the company's financial transparency.
Allegations of Misrepresentation: The lawsuit alleges that Klarna's Registration Statement contained false and misleading statements, failing to disclose the significant risk of increased loss reserves shortly after the IPO, which led to investor losses once the true information was revealed.
Stock Price Impact: Klarna launched its IPO selling 34,311,274 shares at $40 each, but following disappointing Q3 2025 results on November 18, 2025, which revealed a substantial increase in credit loss provisions, its stock price fell by 9.3%, from $34.88 to $31.63, indicating market concerns over its financial health.
Investor Rights Protection: Investors must apply by February 20, 2026, to be appointed as lead plaintiffs in the lawsuit, with Bragar Eagel & Squire offering free consultations to assist affected investors in protecting their legal rights.