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][5]. Group 1: Legal Investigation and Claims - The firm is encouraging investors who suffered losses in Klarna to contact them to discuss their legal options [1]. - 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]. - The complaint alleges that Klarna and its executives materially understated the risk of increased loss reserves shortly after the IPO, which they either knew or should have known [5]. Group 2: Financial Performance and Market Reaction - Klarna reported a net loss of $95 million in its first earnings report since going public, while setting aside $235 million for loan loss provisions, exceeding analyst estimates of $215.8 million [6]. - Provisions for loan losses represented 0.72% of gross merchandise volume, an increase from 0.44% a year ago [6]. - Following the earnings report, Klarna's stock fell by 9.3% on November 18, 2025 [6]. Group 3: Whistleblower and Information Gathering - The firm is also encouraging anyone with information regarding Klarna's conduct, including whistleblowers and former employees, to come forward [8].
CLASS ACTION ALERT: Faruqi & Faruqi, LLP Reminds Klarna (KLAR) Investors of Pending Class Action Lawsuit