Klarna Faces IPO Lawsuit as Firms Court Investors Before Feb. 20 Lead-Plaintiff Deadline

Plaintiffs say IPO materials downplayed rising reserve risks after Q3 figures showed a 102% provision increase, triggering a post-IPO selloff.

Overview

Klarna is named in a securities class action, captioned Nayak v. Klarna Group plc, in the Eastern District of New York, over disclosures tied to its September 2025 IPO.
The complaint asserts the offering documents understated the likelihood of higher loan-loss reserves for Klarna’s buy-now-pay-later lending portfolio.
On Nov. 18, 2025, Klarna reported a net loss and a sharp jump in credit-loss provisions to $235 million, with provisions rising to 0.72% of GMV from 0.44% a year earlier.
Klarna’s shares fell well below the $40 IPO price, trading around $31.31–$31.63 following the quarterly results cited in the suit.
Robbins Geller, Hagens Berman, Bronstein Gewirtz & Grossman, and Johnson Fistel are soliciting IPO investors, with motions for lead plaintiff due by Feb. 20, 2026.