Klarna IPO Lawsuit Moves Forward With Feb. 20 Lead-Plaintiff Deadline
Plaintiffs say the IPO materials downplayed the likelihood of near-term increases in credit-loss reserves.
Overview
- The federal securities case, Nayak v. Klarna Group plc, is pending in the Eastern District of New York following the company’s September 2025 listing.
- Kahn Swick & Foti, DJS Law Group, Faruqi & Faruqi, Hagens Berman, and The Gross Law Firm have issued notices urging IPO purchasers to seek lead-plaintiff status by February 20, 2026.
- The complaint alleges Klarna understated credit-risk and overstated its credit-modeling controls, highlighting risks tied to buy-now-pay-later borrowers with weaker financial profiles.
- Filings cite November 18, 2025 results showing a 102% year-over-year jump in provisions for credit losses to $235 million and a net loss of about $95 million.
- Following those disclosures, the stock fell 9.3% on the day and later traded nearly 22% below its IPO price, according to investor firm notices.