Core Insights - The complaint alleges that Klarna and its executives violated federal securities laws by making false or misleading statements regarding the risk of increased loss reserves shortly after the IPO [2] - Klarna reported record revenue for its third quarter, exceeding estimates, but also set aside more provisions for credit losses, leading to a net loss of $95 million [3] - Provisions for loan losses amounted to $235 million, surpassing analyst estimates of $215.8 million, which contributed to a 9.3% decline in Klarna's stock on November 18, 2025 [3] Financial Performance - Klarna's revenue surged in the third quarter, beating estimates [3] - The company reported a net loss of $95 million due to increased provisions for potentially souring loans [3] - Provisions for loan losses represented 0.72% of gross merchandise volume, an increase from 0.44% a year ago [3] Legal Proceedings - A lead plaintiff has been appointed to oversee the litigation on behalf of the class of investors affected by Klarna's alleged misconduct [4] - The law firm Faruqi & Faruqi is encouraging individuals with information regarding Klarna's conduct to come forward [5]
SHAREHOLDER ACTION REMINDER: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Klarna Group plc