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].
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