Investor Alert: Claims Investigation Launched Against Klarna Group plc
Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced an investigation into potential claims on behalf of investors of Klarna Group plc (NYSE: KLAR). The firm is actively encouraging those who acquired securities linked to Klarna's September 2025 initial public offering (IPO) to explore their legal options. Investors interested in pursuing claims must act before the February 20, 2026, deadline to seek the role of lead plaintiff in a federal securities class action initiated against Klarna.
Details of the Legal Investigation
Faruqi & Faruqi's investigation focuses on allegations that Klarna and its executives violated federal securities laws. Specifically, the firm asserts that:
- The company substantially underestimated the risk associated with its loss reserves, which were anticipated to increase in the months following its IPO.
- Defendants' public statements regarding these risks were materially false and misleading, which aligned neither with their knowledge nor with the risk profiles associated with Klarna's Buy Now, Pay Later (BNPL) loans.
The implications of these allegations suggest that when the reality of the situation became apparent, investors suffered significant financial consequences.
Impact on Stock Performance
On November 18, 2025, a Yahoo! Finance article titled "Klarna Revenue Surges Yet Longer Loans Trigger Provisions" revealed that Klarna had reported notably robust revenue but simultaneously faced substantial credit loss provisions. The article reported:
- Klarna's net loss of $95 million during its third quarter.
- Provisions for loan losses reached $235 million, exceeding analyst expectations of $215.8 million.
- Provisions represented 0.72% of gross merchandise volume, compared to 0.44% a year prior.
In the aftermath of this report, Klarna's stock experienced a significant decline, dropping by 9.3%.
Next Steps for Affected Investors
Investors who believe they have been adversely affected by these events are encouraged to reach out to Faruqi & Faruqi. Those interested in potentially serving as lead plaintiff in the class action lawsuit must either work through their own legal counsel or choose to remain an absent class member without impacting their ability to recover damages. The firm is also actively seeking information from whistleblowers, former employees, and shareholders regarding Klarna's operations.
For further details about the class action and the investigation into Klarna Group plc (KLAR), visit www.faruqilaw.com/KLAR or contact partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Conclusion
As Faruqi & Faruqi continues its investigation into Klarna, the firm remains committed to advocating for the rights of investors. It’s crucial for affected individuals to be proactive in understanding their options in light of the unfolding situation.