Law Firms Court Klarna IPO Investors as Feb. 20 Lead-Plaintiff Deadline Nears

Plaintiffs say the BNPL lender understated credit-loss exposure before its September 2025 listing, a concern sharpened by a November surge in loss provisions.

Overview

Investors who bought shares traceable to Klarna’s September 2025 IPO have until February 20, 2026 to seek lead-plaintiff status in the E.D.N.Y. case Nayak v. Klarna Group plc, No. 25-cv-7033.
Complaints contend the offering documents downplayed credit-risk and the likelihood that loss reserves would rise within months, given the profile of many buy-now-pay-later borrowers.
On November 18, 2025, Klarna reported a sharp increase in provisions for credit losses, with disclosures and reports citing $235 million in provisions, a net loss of about $95 million, and a move to roughly 0.72% of GMV from 0.44% a year earlier.
Following the disclosure, the stock fell into the low $30s from its $40 IPO price, with notices referencing an intraday drop of about 9% and trading roughly 22% below the offering level.
Multiple firms, including Rosen, Hagens Berman, Levi & Korsinsky, Berger Montague, The Gross Law Firm, Howard G. Smith, and Robbins Geller, are seeking investors, and no class has been certified yet.