Core Viewpoint - A class action lawsuit has been filed against Klarna Group PLC, alleging securities fraud and unlawful business practices by the company and its officers [2][3]. Group 1: Lawsuit Details - Investors are encouraged to contact Pomerantz LLP for participation in the class action, with a deadline of February 20, 2026, to apply as Lead Plaintiff [3]. - The lawsuit arises from Klarna's initial public offering (IPO) and subsequent financial disclosures that raised concerns about the company's business practices [2][4]. Group 2: Financial Performance - Klarna conducted its IPO on September 10, 2025, offering 34,311,274 shares at $40 each [4]. - Following the IPO, Klarna reported a net loss of $95 million, with provisions for credit losses amounting to $235 million, exceeding analyst expectations of $215.8 million [4]. - Provisions for credit losses represented 0.72% of gross merchandise volume, an increase from 0.44% the previous year [4]. - As of December 22, 2025, Klarna's stock closed at $31.31, which is below the IPO price [4]. Group 3: Market Context - The company faces scrutiny over customer loan defaults, particularly within its buy now, pay later (BNPL) business model, which has been criticized for targeting younger individuals with lower financial security [4]. - Research from the Richmond Fed indicates that BNPL customers typically have riskier credit profiles, being younger, less-educated, and carrying higher debt burdens [4].
INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in Klarna Group PLC of Class Action Lawsuit and Upcoming Deadlines - KLAR