Deadline Alert: Klarna Group plc (KLAR) Shareholders Who Lost Money Urged To Contact Glancy Prongay Wolke & Rotter LLP About Securities Fraud Lawsuit

Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming February 20, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of Klarna investors.

Jan. 29, 2026 at 12:15pm

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Glancy Prongay Wolke & Rotter LLP is reminding investors who purchased or acquired Klarna Group plc (NYSE: KLAR) securities pursuant and/or traceable to the registration statement and related prospectus issued in connection with the company's September 2025 initial public offering that the deadline to file a lead plaintiff motion in the related class action lawsuit is February 20, 2026.

Why it matters

The lawsuit alleges that Klarna made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company's business, operations, and prospects, particularly related to the risk that its loss reserves would materially increase shortly after the IPO.

The details

The complaint alleges that Klarna failed to disclose to investors that: (1) the company materially understated the risk that its loss reserves would materially increase within a few months of the IPO, which they either knew of or should have known given the risk profile of many individuals agreeing to Klarna's buy now, pay later (BNPL) loans; and (2) as a result, Klarna's positive statements about its business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

  • Klarna conducted its IPO on September 10, 2025, selling 34.3 million shares at $40 per share.
  • On November 18, 2025, Klarna released its third quarter 2025 financial results, revealing that its provision for credit losses spiked by 39%.
  • The deadline for investors to file a lead plaintiff motion in the class action lawsuit is February 20, 2026.

The players

Klarna Group plc

A financial technology company that provides buy now, pay later (BNPL) services and was the subject of a securities fraud lawsuit filed by Glancy Prongay Wolke & Rotter LLP.

Glancy Prongay Wolke & Rotter LLP

A law firm that filed a class action lawsuit on behalf of investors who purchased or acquired Klarna securities pursuant and/or traceable to the company's September 2025 IPO.

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What they’re saying

“If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.”

— Charles Linehan, Attorney, Glancy Prongay Wolke & Rotter LLP (Press Release)

What’s next

The judge will decide on February 20, 2026 whether to appoint a lead plaintiff in the class action lawsuit against Klarna.

The takeaway

This lawsuit highlights the importance of full and accurate disclosures by companies going public, as investors rely on this information to make informed decisions about investing. The case also underscores the role of securities litigation in holding companies accountable for alleged misconduct.