Investors of Klarna Group plc who have experienced significant financial losses now have an opportunity to participate in a class action lawsuit against the company. This comes following Klarna’s initial public offering (IPO) on September 10, 2025, during which the company issued approximately 34 million shares at a price of $40.00 each.
According to Robbins Geller Rudman & Dowd LLP, the law firm leading the charge, investors who acquired Klarna securities during the IPO have until February 20, 2026, to apply for the role of lead plaintiff in the ongoing legal proceedings. The case, titled Nayak v. Klarna Group plc, is currently being heard in the Eastern District of New York and alleges violations of the Securities Act of 1933 by Klarna and several of its top executives.
The allegations suggest that Klarna’s offering documents were misleading, failing to adequately disclose the risks associated with the company’s financial practices, particularly concerning its loss reserves. The lawsuit claims that Klarna underestimated the likelihood of increased loss provisions shortly after the IPO, a risk that was particularly pertinent given the typical profiles of consumers using Klarna’s buy now, pay later services.
On November 18, 2025, Bloomberg News reported that Klarna had incurred a net loss of $95 million due to higher provisions set aside for potentially delinquent loans. These provisions represented 0.72% of the company’s gross merchandise volume, a significant increase from 0.44% the previous year, and were above analyst expectations. Following this news, Klarna’s stock price fell to as low as $31.31 per share, marking a considerable decline from its IPO price.
Individuals who wish to serve as lead plaintiffs must have a substantial financial interest in the outcome of the lawsuit. The Private Securities Litigation Reform Act of 1995 grants any investor who purchased or acquired Klarna securities during the IPO the right to seek this position. The lead plaintiff will represent all class members and can select the law firm they prefer to handle the case.
Robbins Geller Rudman & Dowd LLP is recognized as a leading firm in the realm of securities fraud and shareholder litigation. With a track record of securing significant monetary relief for investors, the firm has recovered over $2.5 billion for clients in 2024 alone, positioning itself at the forefront of this legal sector.
For more information on how to participate in the class action lawsuit or to express interest in becoming a lead plaintiff, potential claimants can visit the Robbins Geller website or contact attorney J.C. Sanchez at 800-449-4900 or by email at [email protected].
As the case unfolds, investors will be closely monitoring developments, particularly regarding Klarna’s financial statements and the implications of the ongoing lawsuit for both the company and its shareholders.