Klarna Faces Securities Class Action Alleging Misleading IPO Disclosures on Credit Loss Reserves

New updates have been reported about Klarna.

Klarna Group plc is facing a newly filed U.S. securities class action that challenges the integrity of its disclosures around loan-loss reserves at the time of its September 10, 2025 initial public offering on the NYSE. The lawsuit, brought by the Schall Law Firm on behalf of investors who purchased Klarna securities pursuant or traceable to the IPO offering documents, alleges that the company understated the likelihood and magnitude of near-term increases in its loss reserves despite the risk profile of its customer base. According to the complaint, Klarna either knew or should have known that higher credit losses were probable in the months immediately following the IPO, and that its offering materials and subsequent public statements therefore were materially false or misleading. The case seeks damages for investors who claim to have suffered losses when the market allegedly learned the true level of Klarna’s risk and adjusted the share price accordingly.

Although the court has not yet certified a class, the litigation introduces legal, financial, and reputational risk for Klarna as a newly listed public company operating in a credit-sensitive, regulated sector. A successful claim could result in financial settlements, increased scrutiny of Klarna’s risk management and disclosure practices, and potential changes in how the company reserves against customer defaults. The core issues—reserve adequacy, credit-risk modeling, and transparency to investors—are central to market confidence in Klarna’s business model and earnings quality. Investors covered by the putative class are those who bought shares tied to the IPO, and they have been invited by plaintiff’s counsel to seek representation before a February 20, 2026 deadline. How Klarna responds to the allegations, and any forthcoming disclosures about its loss-reserve assumptions and portfolio performance post-IPO, will be key for executives, shareholders, and counterparties assessing the company’s risk profile and future capital markets access.