Klarna Group (KLAR) Hit With IPO-Related Securities Class Action Amid 102% Spike in Credit Loss Provision, Questions About Risk-Related Trends Disclosures - Hagens Berman

SAN FRANCISCO, Dec. 24, 2025 /PRNewswire/ -- A securities class action styled Nayak v. Klarna Group plc, et al., No. 1:25-cv-07033 (E.D.N.Y.) has been filed, seeking to represent investors who purchased or otherwise acquired Klarna Group plc (NYSE: KLAR) securities in the company's September 2025 initial public offering.

National shareholder rights law firm Hagens Berman continues to investigate claims that Klarna's offering documents violated federal securities laws and urges investors who suffered significant losses to contact the firm now to discuss their rights.

Class: Investors in Klarna's Sep. 2025 IPO
Lead Plaintiff Deadline: Feb. 20, 2026
Visit: www.hbsslaw.com/investor-fraud/klar
Contact the Firm Now: [email protected] 
                                       844-916-0895

Klarna Group plc (KLAR) Securities Class Action:

The lawsuit is focused on the propriety of Klarna's statements within the company's offering documents whereby it issued over 34 million shares at $40 per share on or about September 11, 2025.

Klarna, which claims to be "a first mover in the 'buy now, pay later' space," assured IPO investors that "[o]ur high credit modeling and scoring performance allows us to responsibly extend credit to consumers with different credit scores while maintaining the quality of our loan portfolio."

The complaint alleges that Klarna's offering documents were misleading because they materially understated credit risks involved in lending to clients who were financially unsophisticated, experiencing financial hardship, and/or borrowing at substantial interest rates for items including fast food deliveries. The complaint further alleges that, because of these factors, Klarna downplayed the risk of material increases in the company's loss provisions.

Investors' disappointment set in on November 18, 2025, when Klarna reported its Q3 2025 financial results that included a massive 102% year-over-year increase in its provision for credit losses and a material year-over-year increase in operating losses.

The news sent the price of Klarna shares sharply lower that day to close at $31.63, about 20% below the IPO price.

"A core issue in the IPO setting is transparency with investors. When a company's provision for credit losses spikes 102% year-over-year, it calls into question whether that risk had already materialized by the time of the IPO," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.

If you invested in Klarna and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Klarna case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Klarna should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP