Core Viewpoint - The complaint against Klarna alleges that the company and its executives violated federal securities laws by making false or misleading statements regarding the risk of loss reserves increasing shortly after the IPO, leading to investor damages when the true information became public [2]. Group 1 - The lawsuit claims that Klarna materially understated the risk associated with its buy now, pay later (BNPL) loans, which they either knew or should have known [2]. - Defendants' public statements were deemed materially false and misleading at all relevant times, and were negligently prepared [2]. - Investors suffered damages when the true details about Klarna's financial situation were revealed to the market [2]. Group 2 - The lead plaintiff in the class action is the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [3]. - Any member of the putative class can move the court to serve as lead plaintiff or choose to remain an absent class member without affecting their ability to share in any recovery [3]. Group 3 - Faruqi & Faruqi, LLP encourages individuals with information regarding Klarna's conduct to come forward, including whistleblowers and former employees [4].
KLAR Investor Alert: Faruqi & Faruqi, LLP Reminds Klarna Investors of Securities Class Action Deadline on February 20, 2026