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].
Law Offices of Howard G. Smith Encourages Klarna Group plc (KLAR) Shareholders To Inquire About Securities Fraud Class Action