Klarna Group faces a wave of securities fraud class-action lawsuits from multiple law firms, including Hagens Berman and Berger Montague. The litigation alleges that Klarna's September 2025 IPO documents contained misleading statements and failed to disclose significant risks. Specifically, the suits claim the company understated the potential for a sharp rise in credit-loss provisions.
These legal challenges and heightened litigation risks are the primary drivers behind the stock's recent decline. Klarna's stock price currently trades nearly 22% below its initial IPO price.
Law firms are actively soliciting investors who suffered losses to join the legal action. The court set a lead plaintiff deadline for February 20, 2026. This timeline intensifies the focus on the company's disclosure practices and immediate legal liabilities.