Core Viewpoint - Hagens Berman is notifying investors about a securities class action against Klarna Group plc, focusing on alleged misstatements in the company's September 2025 IPO documents [1][4]. Group 1: Allegations and Investigation - The investigation centers on claims that Klarna's IPO documents misled investors by highlighting its credit modeling performance while failing to disclose aggressive lending practices to financially unsophisticated consumers [4][8]. - The complaint alleges that Klarna's offering documents materially understated the credit risks associated with lending to clients experiencing financial hardship [8]. - Following the IPO, Klarna reported a 102% year-over-year increase in its provision for credit losses, raising concerns about the transparency of its IPO documents [4][5][8]. Group 2: Financial Impact - Just weeks after the IPO, Klarna's stock price fell nearly 22% below the $40 IPO price due to the revelation of increased credit loss provisions [4][8]. - The significant spike in credit loss provisions indicates potential flaws in Klarna's credit modeling, which was previously presented as robust [8]. Group 3: Next Steps for Investors - Investors who purchased Klarna shares during the September 2025 IPO and incurred losses are encouraged to contact Hagens Berman for assistance [3][6]. - The lead plaintiff deadline for the class action is set for February 20, 2026 [1][7].
Klarna Group (KLAR) Facing Securities Class Action Amid 102% Spike in Credit Loss Provision, Questions About Risk-Related Trends Disclosures – Hagens Berman