Klarna IPO Investors Face Feb. 20 Deadline to Seek Lead Role in E.D.N.Y. Securities Case

Investor firms press IPO buyers to seek lead-plaintiff status as a pending suit claims Klarna understated credit-loss risks revealed by a post-listing surge in reserves.

Overview

The case, captioned Nayak v. Klarna Group plc, No. 25-cv-07033 (E.D.N.Y.), alleges Securities Act violations tied to Klarna’s September 10, 2025 IPO.
Complaints assert the offering documents minimized the likelihood that loss reserves would rise within months given the risk profile of many BNPL borrowers.
On November 18, 2025, Klarna reported a 102% year-over-year jump in its provision for credit losses, including $235 million in provisions equal to 0.72% of GMV, alongside a reported net loss of about $95 million.
Klarna’s shares fell well below the $40 IPO price after the disclosure, with filings citing trades as low as $31.31 per share.
Rosen, Schall, DJS Law Group, Holzer & Holzer, Hagens Berman, Robbins Geller, and the Law Offices of Howard G. Smith are soliciting investors for lead-plaintiff motions due February 20, 2026, noting no class has been certified and inviting whistleblower tips.