Class Action Lawsuits Filed Against Klarna and Paysafe
Securities class action lawsuits have been initiated against financial technology firms Klarna Group and Paysafe Limited. Law firm Faruqi & Faruqi is reminding investors of a February 20 deadline in the Klarna case, while The Gross Law Firm has filed a suit against Paysafe seeking recovery for investors who suffered losses during a specified class period.
- The lawsuit against Klarna alleges that in its September 2025 IPO documents, the company did not adequately disclose the risk of a significant increase in its loss reserves. The offering was for about 34 million shares at $40.00 per share. - Following its IPO, Klarna's stock price fell after a November 18, 2025, report revealed a 102% year-over-year increase in its provision for credit losses. The lawsuit claims this was a known risk due to the profile of its "buy now, pay later" loan recipients. - The class period for the Klarna lawsuit covers investors who purchased securities between September 7, 2025, and December 22, 2025. - The Paysafe lawsuit alleges the company failed to disclose its significant exposure to a single high-risk client and had understated its credit loss reserves. - On November 13, 2025, Paysafe announced a net loss of $87.7 million for the third quarter and lowered its full-year revenue guidance, causing the stock price to drop by over 27%. - The class period for the Paysafe lawsuit applies to investors who bought securities between March 4, 2025, and November 12, 2025. - Allegations against Paysafe also include undisclosed issues with high-risk Merchant Category Codes, which made it difficult to bank some of its client services.
