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Klarna Group Faces Securities Class Action Investigation

In a significant legal development, Hagens Berman, a reputed national shareholder rights law firm, is alerting investors involved with Klarna Group plc (NYSE: KLAR) regarding a pending securities class action. The firm is currently investigating claims related to an over 102% increase in credit loss provisions disclosed shortly after Klarna's Initial Public Offering (IPO) in September 2025. As the February 20, 2026, deadline approaches for potential lead plaintiffs, investors who suffered losses during this period are encouraged to take action.

Details of the Allegations

The class action centers on allegations that Klarna's IPO documents contained misleading information. Specifically, the firm is accused of highlighting its credit modeling prowess while concealing critical aspects regarding its lending practices. Hagens Berman's partner, Reed Kathrein, is taking the lead on this investigation and has raised serious concerns over the transparency of Klarna's IPO statements.

Misleading IPO Documents

The focus of the investigation is on whether Klarna's IPO materials accurately represented the risk involved in lending operations. Investors were reportedly led to believe that Klarna was engaging in sound lending practices when, in fact, the company was allegedly targeting financially vulnerable consumers for high-risk loans, including those for fast food purchases. This has raised questions about the integrity of Klarna's portfolio and overall risk management.

Dramatic Increase in Credit Loss Provisions

The situation escalated shortly after the IPO when Klarna reported a shocking 102% year-over-year spike in its credit loss provisions on November 18, 2025. This development compounded investor frustrations as Klarna's stock price plummeted significantly, trading nearly 22% below its IPO price shortly after the news broke. Such drastic changes have prompted serious doubts about the credibility of Klarna's financial disclosures.

The Assertion of High-Risk Lending

Critics argue that Klarna's growth strategies heavily relied on risky loans to consumers without adequate credit education. These loans typically targeted non-essential goods, with high-interest rates, thereby exposing financially unsophisticated clients to unnecessary risks. Such practices not only threaten the financial stability of vulnerable consumers but also reflect poorly on Klarna's ethical considerations in its lending operations.

Next Steps for Investors

Hagens Berman is dedicated to advocating for investors who feel misled by Klarna's IPO practices. Investors who acquired shares under the September 2025 IPO and have experienced substantial financial losses are urged to reach out. The upcoming Lead Plaintiff Deadline is set for February 20, 2026, and inquiries can be directed either to Hagens Berman or through their secure online form.

Important Contact Information

• - Contact Reed Kathrein at 844-916-0895 or email [email protected] for more information regarding the Klarna class action.
• - Those with insider information about Klarna may also explore the SEC Whistleblower program, which offers financial incentives for information that leads to successful recoveries.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is a global law firm known for representing plaintiffs in complex litigation. The firm seeks to hold corporations accountable and has successfully recovered over $2.9 billion for its clients across various cases, including securities fraud. They focus on numerous sectors, advocating for the rights of investors, consumers, and workers alike.

By shining a spotlight on Klarna's operations and the discrepancies surrounding their financial disclosures, Hagens Berman aims to provide justice for affected investors. The situation highlights important issues of corporate accountability and consumer protection that resonate well beyond just this one case.