Klarna Investors Advised to Inquire About Securities Fraud Class Action

Berger Montague law firm says deadline to join lawsuit is February 20, 2026

Published on Feb. 13, 2026

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National plaintiffs' law firm Berger Montague PC has announced that a class action lawsuit has been filed against Klarna Group plc on behalf of investors who purchased or acquired Klarna securities during the period of September 7, 2025 through December 22, 2025. The lawsuit alleges that Klarna's IPO Registration Statement omitted key facts, specifically that the company understated the potential increase in loss reserves following its IPO.

Why it matters

The lawsuit highlights growing concerns among investors about Klarna's financial reporting and risk management practices leading up to and following its initial public offering. The case could have broader implications for the 'buy now, pay later' fintech industry and its regulatory oversight.

The details

According to the complaint, Klarna, a financial technology company that connects consumers and merchants, knew or should have known of the potential increase in loss reserves due to the risk profiles of its customers. Beginning on November 18, 2025, there were reports that Klarna was increasing its provisions for credit losses in light of defaults. As of the filing of this lawsuit, Klarna shares traded at $31.31 per share, significantly below the $40 IPO price.

  • The class period is from September 7, 2025 through December 22, 2025.
  • The deadline for investors to join the lawsuit is February 20, 2026.

The players

Klarna Group plc

A financial technology company that connects consumers and merchants, allowing loans for small items.

Berger Montague PC

A national plaintiffs' law firm that has filed the class action lawsuit against Klarna on behalf of investors.

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What they’re saying

“Investors who purchased Klarna securities during the Class Period may, no later than February 20, 2026, seek to be appointed as a lead plaintiff representative of the class.”

— Andrew Abramowitz, Senior Counsel, Berger Montague (Newsfilecorp)

“Caitlin Adorni”

— Caitlin Adorni, Director of Portfolio & Institutional Client Monitoring Services, Berger Montague (Newsfilecorp)

What’s next

The judge in the case will decide on February 20, 2026 whether to allow investors to join the class action lawsuit against Klarna.

The takeaway

This case highlights the importance of financial transparency and accurate risk reporting for companies going public, especially in the rapidly evolving fintech industry. Investors will be closely watching the outcome of this lawsuit and its potential impact on Klarna and the broader 'buy now, pay later' sector.