Core Viewpoint - A securities fraud class action lawsuit has been filed against Klarna Group plc on behalf of investors who acquired its securities during the September 2025 IPO, alleging that the company made materially false statements and failed to disclose significant risks related to its business operations [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 [2]. Group 2: Financial Performance and Impact - On November 18, 2025, Klarna reported its third quarter 2025 financial results, indicating a 39% increase in its provision for credit losses, attributed to changes in market and product mix, particularly an increased share of the U.S. market in its Gross Merchandise Volume (GMV) [3]. - Following the financial results announcement, Klarna's stock price dropped by $3.25, or 9.3%, closing at $31.63 per share on the same day, which negatively impacted investors [3]. Group 3: Allegations in the Lawsuit - The lawsuit claims that Klarna's management made materially false and misleading statements and failed to disclose adverse facts about the company's business and prospects. Specifically, it alleges that the company understated the risk of increased loss reserves shortly after the IPO, which was known or should have been known given the risk profile of customers using Klarna's buy now, pay later (BNPL) loans [4]. - As a result, the positive statements made by the company regarding its business operations and prospects were misleading and lacked a reasonable basis [4].
Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Encourages Klarna Group plc (KLAR) Shareholders to Inquire About Securities Fraud Class Action