TMX Newsfile·2026-02-19 16:48Core 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][4]. Group 1: Legal Investigation and Claims - The law firm is encouraging investors who suffered losses exceeding $100,000 in Klarna to contact them for discussing 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][6]. - The complaint alleges that Klarna and its executives materially understated the risk of increased loss reserves shortly after the IPO, which led to misleading public statements [4]. Group 2: Financial Performance and Market Reaction - Klarna reported a net loss of $95 million in its first earnings report since going public, with provisions for loan losses amounting to $235 million, exceeding analyst estimates of $215.8 million [5]. - The provisions for loan losses represented 0.72% of gross merchandise volume, an increase from 0.44% the previous year [5]. - Following the earnings report, Klarna's stock experienced a decline of 9.3% on November 18, 2025 [5].