Klarna Group (KLAR) shares tumbled 7.18% to $19.25 as the company faces intensifying legal pressure regarding allegations of understated credit risks in its September 2025 IPO filings.
- Law firms allege that Klarna failed to disclose aggressive lending practices for high-risk categories, which contributed to a 102% spike in credit loss provisions reported post-IPO.
- Market uncertainty remains high ahead of the February 19 Q4 earnings release and a February 20 lead plaintiff deadline for multiple securities class actions.