Klarna Faces Securities Class Action Over 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 alleging that the company misled investors about credit loss risks tied to its September 10, 2025 initial public offering on the NYSE. The lawsuit, brought by The Schall Law Firm, claims Klarna’s offering documents downplayed the likelihood of substantial increases in loss reserves despite the risk profile of its customer base, and asserts that management knew or should have known that higher reserves were probable in the months immediately following the IPO. According to the complaint, Klarna’s purportedly incomplete and misleading disclosures left investors with a distorted view of the company’s risk exposure at the time of listing, and when the market later received more accurate information, Klarna’s share price fell, causing investor losses.

The case targets investors who bought Klarna securities pursuant or traceable to the IPO, and alleges violations of federal securities laws based on false or misleading statements in the offering materials, a serious allegation for a recently listed fintech. The class has not yet been certified, so affected shareholders are not currently represented unless they proactively engage with counsel, but the action introduces headline, legal, and potential financial risk for Klarna, including possible damages, settlement costs, and increased scrutiny of its credit risk management and disclosure practices. Executives and board members will likely need to assess litigation exposure, review internal controls and provisioning models, and prepare for heightened investor and regulatory attention around underwriting standards, reserve adequacy, and forward-looking risk communication in upcoming earnings and SEC filings.