Core Viewpoint - Hagens Berman is notifying investors about a securities class action against Klarna Group plc, focusing on alleged misstatements in the company's September 2025 IPO documents, with a lead plaintiff deadline set for February 20, 2026 [1][3]. 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 for the class action is February 20, 2026 [3][8]. Allegations - 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 increased loss provisions [5]. Financial Impact - On November 18, 2025, Klarna reported a 102% year-over-year increase in its provision for credit losses, alongside a significant rise in operating losses [6]. - Following this financial disclosure, Klarna's stock price fell nearly 22% below its IPO price [6]. Investigation Insights - Reed Kathrein, a partner at Hagens Berman, emphasized the importance of transparency regarding credit risks, especially when loss provisions doubled shortly after the IPO [7].
Hagens Berman Notifies Klarna Group plc (KLAR) Investors of Feb. 20 Deadline in IPO Securities Class Action