Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Klarna Group plc due to allegations of violations of federal securities laws related to misleading statements and inadequate disclosures regarding loss reserves following its IPO [2][4]. Group 1: Legal Investigation and Claims - The firm is encouraging investors who suffered losses in Klarna to contact them to discuss their legal options, particularly those who purchased securities in connection with Klarna's September 2025 IPO [1][2]. - A federal securities class action has been filed against Klarna, with a deadline of February 20, 2026, for investors to seek the role of lead plaintiff [2][6]. - The complaint alleges that Klarna materially understated the risk of increased loss reserves shortly after the IPO, which misled investors [4]. Group 2: Financial Performance and Market Reaction - Klarna reported a net loss of $95 million in its third quarter, while setting aside $235 million for loan loss provisions, exceeding analyst estimates of $215.8 million [5]. - Provisions for loan losses represented 0.72% of gross merchandise volume, an increase from 0.44% the previous year [5]. - Following the earnings report, Klarna's stock experienced a decline of 9.3% on November 18, 2025 [5].
INVESTOR DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Klarna Group plc