Klarna IPO Investors Urged to Seek Lead-Plaintiff Role as New York Securities Case Proceeds

Overview

• The putative class action, filed in the Eastern District of New York as Nayak v. Klarna Group plc, challenges statements in the September 2025 registration materials.
• Notices from Kahn Swick & Foti, DJS Law Group, and Faruqi & Faruqi set a February 20, 2026 cutoff to move for lead-plaintiff appointment.
• Plaintiffs allege the IPO documents understated the likelihood that loss reserves would rise within months, given the BNPL borrower risk profile.
• A November 18, 2025 earnings report showed $235 million in credit-loss provisions, 0.72% of GMV, and a net loss near $95 million, after which shares fell about 9.3%.
• The litigation remains at the pre-certification stage, with firms also soliciting information from shareholders, whistleblowers, and former employees.