Investors in Klarna Group plc now have the opportunity to take legal action following significant losses stemming from the company’s initial public offering (IPO). Robbins Geller Rudman & Dowd LLP announced that individuals who purchased Klarna securities as part of its September 10, 2025, IPO have until February 20, 2026, to seek appointment as lead plaintiff in a class action lawsuit against the company. The case is titled Nayak v. Klarna Group plc and is currently pending in the Eastern District of New York.
The lawsuit claims that Klarna, along with certain executives and underwriters, violated the Securities Act of 1933. According to Robbins Geller, the IPO involved the issuance of approximately 34 million shares at an initial price of $40.00 per share. Allegations suggest that the offering documents contained material misrepresentations regarding Klarna’s financial health, particularly the company’s loss reserves, which reportedly increased shortly after the IPO.
On November 18, 2025, an article by Bloomberg News highlighted that Klarna reported a net loss of $95 million for the third quarter, a situation exacerbated by higher provisions for potentially defaulting loans. Provisions for loan losses amounted to $235 million, exceeding analyst expectations of $215.8 million. Following this report, Klarna’s stock price plummeted to as low as $31.31, a significant decrease from its IPO price.
The process for becoming a lead plaintiff is outlined under the Private Securities Litigation Reform Act of 1995. Eligible investors who purchased Klarna securities during the IPO may seek to represent the interests of the entire class. The lead plaintiff acts on behalf of all class members and can select a law firm of their choice for the litigation. Importantly, an investor’s potential recovery does not hinge on their role as lead plaintiff.
Robbins Geller Rudman & Dowd LLP is recognized as a leading law firm specializing in securities fraud and shareholder litigation. The firm has secured substantial financial recoveries for investors, totaling over $2.5 billion in 2024 alone, according to ISS Securities Class Action Services. With around 200 lawyers across ten offices, Robbins Geller has achieved notable success in high-profile securities class action cases.
For investors who believe they are eligible to participate in this class action lawsuit or who wish to learn more, they can provide their information through the firm’s dedicated webpage or contact attorney J.C. Sanchez directly at 800-449-4900 or via email.
As the deadline approaches, affected investors are urged to consider their options carefully, as the outcome of this case could have significant implications for Klarna and its stakeholders.
