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 [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, which exceeded analyst estimates of $215.8 million [5]. - The 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 fell by 9.3% on November 18, 2025, indicating a negative market reaction to the financial disclosures [5].
KLAR DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Klarna Group plc