Bragar Eagel & Squire Reminds Klarna Investors of Upcoming Deadline

Litigation firm urges investors who suffered losses to contact them about legal options.

Published on Feb. 16, 2026

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Bragar Eagel & Squire, P.C., a national stockholder rights law firm, has filed a class action lawsuit against Klarna Group plc on behalf of investors who purchased or acquired Klarna's common stock IPO traceable to September 10, 2025. The lawsuit alleges the company's registration statement contained false and/or misleading statements about the risk of its loss reserves increasing. Investors have until February 20, 2026 to apply to be the lead plaintiff in the case.

Why it matters

The lawsuit against Klarna highlights concerns about the company's financial disclosures and risk profile ahead of its 2025 IPO. Investors who suffered losses may be able to recover damages if the allegations are proven true. The case also underscores the importance of thorough due diligence when investing in IPOs.

The details

According to the lawsuit, the registration statement for Klarna's September 2025 IPO allegedly understated the risk that its loss reserves would materially increase within a few months. When Klarna reported disappointing Q3 2025 results showing a staggering increase in credit loss provisions, the stock price declined by over 9%. The lawsuit claims investors suffered damages as a result of Klarna's allegedly false and misleading statements.

  • Klarna launched its IPO in September 2025, selling 34,311,274 shares at $40.00 per share.
  • On November 18, 2025, Klarna announced its Q3 2025 financial results, revealing a staggering increase in the provision for credit losses.

The players

Bragar Eagel & Squire, P.C.

A nationally recognized stockholder rights law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation.

Brandon Walker

A litigation partner at Bragar Eagel & Squire who is encouraging investors who suffered losses in Klarna to contact him directly to discuss their options.

Melissa Fortunato

A lawyer at Bragar Eagel & Squire who is also encouraging investors who suffered losses in Klarna to contact her directly to discuss their options.

Klarna Group plc

A financial technology company that provides buy now, pay later (BNPL) services. Klarna launched its IPO in September 2025.

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What they’re saying

“If you purchased or acquired Klarna's common stock IPO traceable to September 10, 2025 and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.”

— Brandon Walker, Litigation Partner, Bragar Eagel & Squire (Bragar Eagel & Squire)

What’s next

The judge in the case will decide on February 20, 2026 whether to allow the lawsuit to proceed as a class action.

The takeaway

This lawsuit highlights the importance for investors to conduct thorough due diligence on IPOs, as the allegations suggest Klarna may have understated key financial risks in its registration statement. Investors who suffered losses may be able to recover damages if the claims are proven true.