Investigation Launched Against Affirm Holdings, Inc. Over Alleged Securities Law Violations
New York, NY – March 20, 2025
Levi & Korsinsky, a leading securities law firm, has announced the commencement of an investigation into Affirm Holdings, Inc. (NASDAQ: AFRM) concerning potential securities laws violations. The investigation comes following the announcement by Klarna, a prominent fintech company, that it will replace Affirm as the exclusive provider of Buy Now, Pay Later (BNPL) loans for Walmart.
Background
Affirm Holdings, Inc., based in San Francisco, California, is a financial services company that offers point-of-sale financing for online and in-store purchases through its BNPL service. The company’s stock has seen significant growth since its IPO in January 2021, with shares trading at around $115 as of March 15, 2025.
Impact on Affirm Holdings
The replacement of Affirm as Walmart’s BNPL partner by Klarna, set to take effect in the second quarter of 2025, has raised concerns among investors. Klarna’s announcement came before its own IPO, which is expected to occur in the coming weeks. This sudden shift in business arrangements between Walmart and Affirm has led to questions about the potential impact on Affirm’s financial performance and revenue.
Potential Securities Law Violations
Levi & Korsinsky’s investigation focuses on whether Affirm Holdings, Inc. and its management misrepresented the financial health and business prospects of the company, leading to artificially inflated stock prices. The law firm is urging investors who purchased Affirm Holdings securities between January 14, 2021, and March 15, 2025, to contact them regarding the investigation.
Impact on Consumers and the World
The fallout from this situation could have far-reaching consequences for consumers and the financial industry as a whole. If Affirm Holdings is found to have violated securities laws, it could lead to significant fines, regulatory action, and potentially even criminal charges. Moreover, the loss of a major partnership with Walmart could impact Affirm’s ability to attract and retain other merchants, potentially leading to a decline in revenue and market share.
From a consumer perspective, concerns over the financial stability and business practices of BNPL providers have been growing in recent months. The sudden shift in Walmart’s partnership from Affirm to Klarna could lead to increased scrutiny of the BNPL industry as a whole. This could result in tighter regulations and greater transparency, which some argue is necessary to protect consumers from potential risks associated with these services.
Conclusion
The investigation into Affirm Holdings, Inc. by Levi & Korsinsky marks a significant development in the rapidly evolving world of Buy Now, Pay Later financing. The replacement of Affirm as Walmart’s BNPL partner by Klarna has raised concerns about potential securities law violations and the financial health of the company. As the situation unfolds, investors, consumers, and the financial industry will be closely watching developments to understand the implications for the future of this innovative financial service.
- Affirm Holdings, Inc. is under investigation for potential securities law violations following the loss of its partnership with Walmart to Klarna.
- The investigation focuses on whether Affirm misrepresented its financial health and business prospects to investors.
- The replacement of Affirm by Klarna could impact Affirm’s revenue and market share.
- The situation could lead to increased scrutiny of the Buy Now, Pay Later industry and potential regulatory action.
