Core Viewpoint - Hagens Berman is notifying investors of a lead plaintiff deadline on February 20, 2026, in a securities class action against Klarna Group plc, focusing on alleged misstatements in the company's September 2025 IPO documents [1][8]. Summary by Relevant Sections Class Action Details - The class action involves investors who purchased shares during Klarna's September 2025 IPO and are claiming significant losses [3]. - The lead plaintiff deadline is set for February 20, 2026, which is the date by which investors must move the court for appointment as lead plaintiff [8]. Allegations Against Klarna - The core allegation is that Klarna's IPO documents materially understated credit loss reserves and risks associated with "Fair Financing" [3][4]. - The lawsuit claims that Klarna's offering documents misrepresented the company's credit modeling and risk management practices [4]. - Specifically, it is alleged that the documents downplayed risks related to lending to financially unsophisticated clients and those experiencing financial hardship, which could lead to significant increases in loss provisions [5]. Financial Performance and Impact - On November 18, 2025, Klarna reported a 102% year-over-year increase in its provision for credit losses, alongside a material increase in operating losses [6]. - Following this financial disclosure, Klarna's stock price fell nearly 22% below its IPO price, indicating a significant market reaction to the reported losses [6]. Investigation Insights - Hagens Berman is investigating whether Klarna's IPO documents adequately disclosed the company's credit risks, particularly in light of the doubling of credit loss provisions shortly after the IPO [7].
KLAR INVESTOR ALERT: Hagens Berman Notifies Klarna Group plc (KLAR) Investors of Feb. 20 Deadline in IPO Securities Class Action