Klarna’s Record Wall Street Debut Despite Lawsuit #

Swedish fintech giant Klarna initially made a powerful entrance on the New York Stock Exchange in September 2025. Listing under the ticker KLAR, the “Buy Now, Pay Later” firm priced its IPO at $40 per share and soared 30% on its first day to open at $52, valuing the company at roughly $18 billion.

However, this early success has been dampened by a wave of securities class action lawsuits filed in late 2025 and early 2026. Investors allege that Klarna’s IPO documents materially understated the risks of its lending practices, specifically regarding “fast food” loans to vulnerable consumers. Following a Q3 report revealing a 102% spike in credit loss provisions, Klarna’s stock tumbled well below its offering price. The lawsuits claim the company failed to disclose the likelihood of surging loss reserves, leaving shareholders to suffer significant losses shortly after the celebrated debut.