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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
Prnewswire· 2025-12-24 13:51
Core Viewpoint - A securities class action has been filed against Klarna Group plc, focusing on alleged violations of federal securities laws during its September 2025 IPO, where over 34 million shares were issued at $40 each [1][2][3]. Group 1: Legal Action and Allegations - The lawsuit seeks to represent investors who acquired Klarna securities during the IPO and claims that the offering documents were misleading regarding credit risks [2][3]. - The complaint highlights that Klarna's statements about its credit modeling and scoring performance were deceptive, as they downplayed the risks associated with lending to financially unsophisticated clients [3][4]. Group 2: Financial Performance and Market Reaction - Klarna reported a significant 102% year-over-year increase in its provision for credit losses in Q3 2025, alongside a material rise in operating losses, which led to a sharp decline in its share price to $31.63, approximately 20% below the IPO price [4][5]. - The spike in credit loss provisions raises questions about the transparency of Klarna's risk disclosures at the time of the IPO [5].
CORRECTING and REPLACING Klarna Group plc Securities Class Action Result of Understated Risks and Stock Decline - Investors may Contact Lewis Kahn, Esq, at Kahn Swick & Foti, LLC
Businesswire· 2025-12-24 00:53
Core Viewpoint - Klarna Group plc is facing a securities class action lawsuit due to alleged failure to disclose material risks related to its financial performance, particularly concerning loss reserves, which has led to a significant decline in stock value [1][3][4]. Group 1: Lawsuit Details - Investors who suffered substantial losses from Klarna's securities have until February 20, 2026, to file lead plaintiff applications in the ongoing class action lawsuit [1][2]. - The lawsuit is filed in the United States District Court for the Eastern District of New York under the case name Nayak v Klarna Group Plc., et al., No. 25-cv-7033 [3][5]. Group 2: Allegations Against Klarna - Klarna and its executives are accused of not disclosing critical information during the Class Period, which constitutes a violation of federal securities laws [3]. - The specific allegations include that Klarna materially understated the risk of increased loss reserves shortly after its September 2025 IPO, which they either knew or should have known [4]. - As a result of these misleading statements, investors reportedly suffered damages when the true financial situation became known [4]. Group 3: Legal Representation - Kahn Swick & Foti, LLC (KSF) is representing the investors in this class action, with a notable background in securities litigation and a ranking among the top 10 firms nationally based on total settlement value [5]. - KSF offers potential plaintiffs the opportunity to discuss their legal rights and the implications of the case without obligation or cost [2][5].
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
Globenewswire· 2025-12-24 00:24
Core Viewpoint - A securities class action has been filed against Klarna Group plc, alleging that the company's offering documents for its September 2025 IPO misrepresented the risks associated with its lending practices, particularly regarding credit risks and loss provisions [1][3]. Group 1: Legal Action and Investigation - The lawsuit, Nayak v. Klarna Group plc, seeks to represent investors who acquired Klarna securities during its IPO, which involved the issuance of over 34 million shares at $40 each [1][2]. - Hagens Berman, a national shareholder rights law firm, is investigating claims that Klarna's offering documents violated federal securities laws and is encouraging affected investors to come forward [2][5]. Group 2: Financial Performance and Investor Reaction - Klarna reported a significant 102% year-over-year increase in its provision for credit losses in Q3 2025, alongside a material increase in operating losses, which led to a sharp decline in its share price to $31.63, approximately 20% below the IPO price [4]. - The increase in credit loss provisions raises concerns about the transparency of Klarna's risk disclosures at the time of the IPO, suggesting that the risks may have already materialized [5].
KLAR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of Klarna Group plc Investors
Businesswire· 2025-12-23 23:00
Core Viewpoint - A class action lawsuit has been filed against Klarna Group plc, alleging that the company misrepresented risks associated with its loss reserves during its IPO period from September 7, 2025, to December 22, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Klarna's Registration Statement for its September 2025 IPO contained false or misleading statements and failed to disclose the risk of a significant increase in loss reserves shortly after the IPO [2]. - Klarna launched its IPO on September 2025, selling 34,311,274 shares at a price of $40.00 per share [3]. - Following the announcement of disappointing Q3 2025 financial results on November 18, 2025, which included a substantial increase in credit loss provisions, Klarna's share price fell by $3.25, or approximately 9.3%, from $34.88 to $31.63 [3]. Group 2: Lead Plaintiff Process - Investors who acquired Klarna securities during the class period can seek appointment as lead plaintiff in the class action lawsuit, with courts typically favoring those with the largest financial loss [4]. - Lead plaintiffs have the authority to influence case strategy, settlement decisions, and allocation of settlement funds among class members [4]. Group 3: Contact Information - Investors who purchased Klarna securities or have relevant information are encouraged to contact Kirby McInerney LLP for further discussion regarding their rights or interests [5].
Law Offices of Howard G. Smith Encourages Klarna Group plc (KLAR) Shareholders To Inquire About Securities Fraud Class Action
Businesswire· 2025-12-23 22:45
Core Viewpoint - A class action lawsuit has been filed against Klarna Group plc on behalf of investors who purchased its securities during the September 2025 IPO, alleging misleading statements and failure to disclose material adverse facts about the company's financial health and risk profile [1][4]. Group 1: IPO Details - Klarna conducted its IPO on September 10, 2025, selling 34.3 million shares at a price of $40 per share [3]. - Following the IPO, Klarna's stock price experienced a significant decline after the release of its third quarter 2025 financial results, which revealed a 39% increase in provision for credit losses [3]. Group 2: Financial Performance - The increase in credit loss provisions was attributed to changes in market and product mix, particularly an increased share of the U.S. market in its Gross Merchandise Volume (GMV) [3]. - On November 18, 2025, the stock price fell by $3.25, or 9.3%, closing at $31.63 per share, indicating investor injury due to the disclosed financial issues [3]. Group 3: Lawsuit Allegations - The lawsuit alleges that Klarna's management made materially false and misleading statements regarding the company's business and operations [4]. - Specifically, it is claimed that the risk of increased loss reserves was materially understated, which management either knew or should have known, given the risk profile of consumers using Klarna's buy now, pay later (BNPL) loans [4]. - The positive statements made by the defendants about the company's prospects were deemed materially misleading and lacked a reasonable basis [4].
Bronstein, Gewirtz & Grossman LLC Urges Klarna Group plc Investors to Act: Class Action Filed Alleging Investor Harm
Globenewswire· 2025-12-23 22:19
Core Viewpoint - A class action lawsuit has been filed against Klarna Group plc and certain officers for alleged violations of federal securities laws related to its September 10, 2025 IPO [1][2]. Group 1: Lawsuit Details - The lawsuit seeks to recover damages for investors who purchased Klarna securities under the registration statement and prospectus from the IPO [2]. - The Complaint alleges that the Registration Statement contained false and misleading statements, particularly regarding the risk of loss reserves increasing shortly after the IPO [3]. - It is claimed that the defendants either knew or should have known about the risk profile of individuals taking Klarna's buy now, pay later loans, which was not adequately disclosed [3]. Group 2: Next Steps for Investors - Investors who suffered losses in Klarna have until February 20, 2026, to request to be appointed as lead plaintiff in the class action [4]. - Participation in any recovery does not require serving as lead plaintiff [4]. Group 3: Legal Representation - Bronstein, Gewirtz & Grossman LLC operates on a contingency fee basis, meaning they will only seek reimbursement for expenses and fees if successful [5]. - The firm has a history of recovering hundreds of millions of dollars for investors in securities fraud class actions [6].
KLAR INVESTOR ALERT: Klarna Group plc Investors with Substantial Losses Have Opportunity to Lead the Klarna Class Action Lawsuit
Prnewswire· 2025-12-23 20:57
Core Viewpoint - Klarna Group plc is facing a class action lawsuit related to its September 10, 2025 IPO, alleging violations of the Securities Act of 1933 due to misleading offering documents and understated risks associated with its loss reserves [1][3]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Nayak v. Klarna Group plc and was filed in the Eastern District of New York [1]. - Investors who purchased Klarna securities during the IPO have until February 20, 2026, to seek appointment as lead plaintiff [1]. - The lawsuit claims that Klarna's IPO documents were materially false and omitted critical information regarding the company's financial risks [3]. Group 2: Financial Performance and Allegations - Klarna's IPO involved the issuance of approximately 34 million shares at an offering price of $40.00 per share [2]. - Following the IPO, Klarna reported a net loss of $95 million and increased provisions for loan losses to $235 million, exceeding analyst estimates of $215.8 million [4]. - Provisions for loan losses represented 0.72% of gross merchandise volume, an increase from 0.44% the previous year [4]. - By the time the class action lawsuit commenced, Klarna's stock price had fallen to as low as $31.31 per share, significantly below the IPO price [4]. Group 3: Legal Process and Firm Background - The Private Securities Litigation Reform Act of 1995 allows investors to seek lead plaintiff status if they have the greatest financial interest in the case [5]. - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud litigation, having recovered over $2.5 billion for investors in 2024 alone [6].
Klarna Group plc Securities Fraud Class Action Result of Understated Risks and Stock Decline - Investors may Contact Lewis Kahn, Esq, at Kahn Swick & Foti, LLC
Businesswire· 2025-12-23 20:03
KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors with substantial losses that they have until February 20, 2026 to file lead plaintiff applications in a securities class action lawsuit against Klarna Group plc (NYSE: KLAR), if they purchased the Company's securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registr. NEW YORK CITY & NEW ORLEANS--(BUSINESS WIRE)--Kahn Swick & Foti, LLC ("KSF†) and ...
DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Klarna Group plc
Businesswire· 2025-12-23 19:53
NEW YORK--(BUSINESS WIRE)---- $KLAR #ClassAction--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Klarna Group plc ("Klarna†or the "Company†) (NYSE: KLAR) and reminds investors of the February 20, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm ...
Klarna Sees Triple-Digit Spending Growth Across Entertainment, Experiences, and Automotive This Holiday Season
Businesswire· 2025-12-23 14:31
Core Insights - Klarna reports significant increases in U.S. holiday spending, with triple-digit year-over-year growth in categories such as entertainment (+130%), experiences (+115%), and automotive products (100%) from December 1 to December 22, indicating a shift towards experiential and high-value purchases this season [1][2] Consumer Trends - In traditional retail, footwear emerged as the most-clicked category, with popular items including Nike Air Force 1 '07, UGG Lowmel, Adidas Samba OG, and classic Jordan styles [3] - Headphones ranked as the second most-clicked category, with strong interest in Apple AirPods 4, AirPods Pro (2nd Gen), and premium models from Sony and Bose [4] - Gaming interest focused on console upgrades, particularly Microsoft's Xbox Series X and Series S, along with newer systems like the Nex Playground Game System [4] - Handbags saw steady engagement, with consumers favoring practical styles from brands like Michael Kors, Coach, Lululemon, and Marc Jacobs [5] - Fragrances dominated clicks, with bestsellers including Carolina Herrera Good Girl, Dior Sauvage, and Viktor & Rolf Flowerbomb [5] Company Overview - Klarna is a global digital bank and flexible payments provider, boasting over 114 million active users and processing 3.4 million transactions daily [6] - The company partners with over 850,000 retailers, including major brands like Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike, and Airbnb, to enhance consumer payment experiences [6]