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SAN FRANCISCO, Feb. 20, 2026 /PRNewswire/ -- National shareholder rights law firm Hagens Berman is notifying investors in Klarna Group plc (NYSE: KLAR) of the upcoming February 20, 2026, lead plaintiff deadline in a pending securities class action. The firm is actively investigating the lawsuit's claims of alleged misstatements in Klarna's September 2025 Initial Public Offering (IPO) documents.
CLICK HERE TO SUBMIT YOUR KLARNA LOSSES
Investors who purchased Klarna (KLAR) shares pursuant to the company's September 2025 IPO and suffered significant losses are encouraged to contact the firm now.
The investigation focuses on allegations in a pending securities class action that Klarna's IPO documents misled investors by emphasizing Klarna's high credit modeling and scoring performance while allegedly omitting to disclose that it was aggressively lending to financially unsophisticated consumers, including for high-risk items like fast-food deliveries. Just weeks after the IPO, Klarna reported a staggering 102% year-over-year increase in its provision for credit losses, causing shares to plunge well below the $40 IPO price.
"When a company's credit loss provisions double almost immediately after going public, it raises serious questions about whether the IPO documents were truly transparent," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation
DEEP DIVE ANALYSIS: View our latest video summary of the allegations: youtu.be/6PLHhmxwYTY
Klarna Securities Class Action: Alleged Credit Modeling Failures
The pending litigation alleges Klarna's IPO documents contained misleading statements regarding the quality and sustainability of the company's loan portfolio.
- Understated credit risks: The complaint alleges that Klarna's offering documents materially understated the credit risks involved in lending to clients who were financially unsophisticated, experiencing financial hardship.
- The "Fast Food" Loan Allegations: The complaint alleges that Klarna's growth was fueled by high-frequency, high-interest loans for non-durable goods (like fast food), a practice that critics argue targets the most financially vulnerable consumers and carries an elevated risk of default.
- 102% Loss Provision Spike: On Nov. 18, 2025—shortly after the IPO—Klarna revealed a 102% year-over-year increase in its provision for credit losses, revealing flaws in the company's purportedly robust modeling.
- IPO Price Collapse: Following this news, Klarna's stock price plummeted, eventually trading nearly 22% below its IPO price.
Next Steps: Contact Partner Reed Kathrein Today
Hagens Berman is a top-tier plaintiff litigation firm recognized for prosecuting securities fraud class actions.
Mr. Kathrein is actively advising investors who purchased KLAR shares pursuant to the September 2025 IPO and suffered substantial losses.
The Lead Plaintiff Deadline is February 20, 2026.
TO SUBMIT YOUR KLARNA (KLAR) IPO LOSSES NOW, PLEASE USE THE SECURE FORM BELOW:
- Report Your KLAR IPO Losses to Hagens Berman
- Contact: Reed Kathrein at 844-916-0895 or email KLAR@hbsslaw.com
If you'd like more information and answers to frequently asked questions about the Klarna case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Klarna should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email KLAR@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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SOURCE Hagens Berman Sobol Shapiro LLP
NEW YORK, Feb. 19, 2026 /PRNewswire/ --
Why: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Klarna Group plc (NYSE: KLAR) pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with Klarna's September 2025 initial public offering (the "IPO"), of the important February 20, 2026 lead plaintiff deadline in the securities class action first filed by the Firm.
So What: If you purchased Klarna securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
What to do next: To join the Klarna class action, go to https://rosenlegal.com/submit-form/?case_id=48971 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than February 20, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
Details of the case: According to the lawsuit, the Registration Statement contained false and/or misleading statements and/or failed to disclose that: (1) Defendants materially understated the risk that Klarna's loss reserves would materially go up within a few months of the IPO, which they either knew of or should have known of given the risk profile of many individuals agreeing to Klarna's buy now, pay later ("BNPL") loans; and (2); as a result, defendants' public statements were materially false and misleading at all relevant times and negligently prepared. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Klarna class action, go to https://rosenlegal.com/submit-form/?case_id=48971 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
case@rosenlegal.com
www.rosenlegal.com
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SOURCE THE ROSEN LAW FIRM, P. A.
