Klarna IPO Lawsuit Intensifies as Firms Rally Investors Before Feb. 20 Lead-Plaintiff Deadline

The E.D.N.Y. case alleges the IPO materials hid credit-loss risks revealed by a sharp November increase in loss provisions.

Overview

Klarna faces a securities class action in the Eastern District of New York captioned Nayak v. Klarna Group plc, No. 25-cv-7033.
Multiple plaintiff firms are recruiting IPO purchasers to seek appointment as lead plaintiff by February 20, 2026.
The complaints contend Klarna understated the likelihood that loss reserves would rise soon after the IPO given its buy-now-pay-later customer mix.
On Nov. 18, 2025, Klarna reported Q3 results including a roughly 102% year-over-year jump in provisions for credit losses to about $235 million, or 0.72% of GMV, and a net loss of about $95 million.
Klarna’s shares fell 9.3% on the disclosure and later traded nearly 22% below the $40 IPO price, and firms note no class has been certified as some also solicit whistleblowers.