News › GlobeNewswire Inc.

KLAR Shareholder Notice: Klarna Group (KLAR) Facing Securities Class Action Amid 102% Spike in Credit Loss Provision, Questions About Risk-Related Trends Disclosures – Hagens Berman

GlobeNewswire Inc. • Dec 31, 2025 1:33pm (New York) •By Hagens Berman

KLAR Shareholder Notice: Klarna Group (KLAR) Facing Securities Class Action Amid 102% Spike in Credit Loss Provision, Questions About Risk-Related Trends Disclosures – Hagens Berman

Klarna Group (KLAR) faces a securities class action lawsuit alleging its September 2025 IPO offering documents misrepresented credit risks. The company's November Q3 2025 results revealed a 102% year-over-year increase in credit loss provisions and material operating losses, causing shares to drop 20% below the $40 IPO price to $31.63. Investors claim Klarna downplayed risks associated with lending to financially unsophisticated borrowers and those with high interest rates.

← Back to news Read Original Article

Insights

KLAR negative

The company faces a securities class action lawsuit for allegedly misleading IPO investors about credit risks. A 102% spike in credit loss provisions and 20% share price decline from IPO price indicate serious financial deterioration and potential fraud in disclosure practices.

Keywords

#securities class action #IPO fraud #credit loss provision #buy now pay later #misleading disclosures #financial risk #shareholder losses

Tickers

KLAR

← Prev: INSP CLASS ACTION DEADLINE: $42.04 Stock Drop at Inspire Medical Systems (INSP) Triggers Securities Fraud Lawsuit Over Concealed Medicare Billing Software Failures & Inspire V Inventory Glut

Next: Stride, Inc. Securities Fraud Class Action Result of Customer Experience Issues and +54% Stock Decline - Investors may Contact Lewis Kahn, Esq, at Kahn Swick & Foti, LLC →