Core Viewpoint - Hagens Berman is investigating claims against Klarna Group plc regarding alleged misstatements in its September 2025 IPO documents, particularly concerning understated loss reserves and lending practices to financially vulnerable consumers [1][3]. Group 1: Allegations and Investigations - The investigation focuses on allegations that Klarna's IPO documents misled investors by highlighting its credit modeling performance while failing to disclose aggressive lending to financially unsophisticated consumers [3][4]. - The complaint claims that Klarna's offering documents materially understated the credit risks associated with lending to clients experiencing financial hardship [6]. - Allegations include that Klarna's growth was driven by high-frequency, high-interest loans for non-durable goods, such as fast food, which critics argue targets financially vulnerable consumers and increases default risk [6]. Group 2: Financial Impact - Following the IPO, Klarna reported a 102% year-over-year increase in its provision for credit losses, indicating potential flaws in its credit modeling [3][6]. - After the announcement of the increased loss provisions, Klarna's stock price fell nearly 22% below its IPO price, which was initially set at $40 [3][6]. Group 3: Legal Proceedings - Investors who purchased Klarna shares during the September 2025 IPO and suffered losses are encouraged to contact Hagens Berman, with a lead plaintiff deadline set for February 20, 2026 [1][5].
KLAR ALERT: Hagens Berman Investigating Alleged Claims in Securities Class Action Against Klarna Group (KLAR) Over 102% Spike in Credit Loss Provision