Legal Deadlines Loom for Klarna and Perrigo Investors Following Disclosure Allegations

2025-12-28 companies

New York, Monday, 29 December 2025.
Action is required by early 2026 as lawsuits allege Klarna concealed loan risks and Perrigo hid infant formula manufacturing deficiencies, sparking significant legal challenges.

Investors Face Critical Decisions as Litigation Deadlines Approach

Investors in the fintech and pharmaceutical sectors are currently navigating a complex legal landscape as crucial deadlines for class action lawsuits against Klarna Group plc (KLAR) and Perrigo Company plc (PRGO) draw near [1][2]. The Rosen Law Firm has issued alerts urging shareholders to secure counsel, highlighting allegations that both companies engaged in misleading disclosure practices that obscured material risks [1][2]. While the specific claims vary—ranging from understated credit risks in consumer lending to operational failures in infant formula manufacturing—the window for affected investors to petition the court for lead plaintiff status is narrowing, with the first deadline set for mid-January 2026 [1][2].

Klarna’s Post-IPO Turbulence and Financial Disclosures

The legal challenges surrounding Klarna center on its Initial Public Offering (IPO) conducted on September 10, 2025, where the company issued approximately 34 million shares to the public at a price of $40.00 per share [3][5]. Lawsuits filed by multiple firms, including Robbins Geller Rudman & Dowd LLP and Bronstein, Gewirtz & Grossman, LLC, allege that the company’s registration statement contained materially false or misleading information [3][6]. The core of the complaint suggests that Klarna failed to adequately disclose the risk that its loss reserves would increase significantly shortly after the IPO, given the risk profiles of consumers utilizing its “buy now, pay later” (BNPL) loans [2][5].

Perrigo’s Manufacturing and Disclosure Challenges

Simultaneously, Perrigo Company plc is facing allegations regarding the management and disclosure of its infant formula business, which was acquired from Nestlé [1]. The class action lawsuit, covering the period between February 27, 2023, and November 4, 2025, claims that the company made false statements or failed to disclose material adverse facts [1]. Specifically, the complaint alleges that Perrigo underinvested in the maintenance of its infant formula operations and suffered from significant manufacturing deficiencies [1]. These operational issues allegedly led to an overstatement of the company’s financial results and rendered positive statements about its business prospects misleading [1].

Sources

Securities Litigation Class Action