Klarna faces a class action lawsuit over alleged false IPO disclosures about buy-now-pay-later loan risks, leading to a stock drop and potential investor compensation.

A class action lawsuit has been filed against Klarna Group PLC, alleging its IPO prospectus contained false or misleading information about risks tied to its buy-now-pay-later loans. The complaint, filed by the Rosen Law Firm, claims Klarna failed to disclose expected increases in loss reserves, which later materialized, contributing to a drop in stock value from $40 to $31.31 by December 2025. Investors who bought Klarna stock between September 2025 and the time of the earnings report may qualify for compensation under a contingency fee arrangement. The deadline to apply for lead plaintiff status is February 20, 2026.