Pagaya accuses Klarna of stealing subprime lending model # AI -powered underwriting fintech Pagaya is suing Klarna – its former partner – for misappropriating i
Fintech firm Pagaya has filed a lawsuit against its former partner, Klarna, alleging the company stole its AI-powered subprime lending model. Pagaya claims Klarna misappropriated trade secrets and violated licensing and loan sale agreements. This legal action stems from their previous partnership in the buy-now-pay-later sector. AI
IMPACT This lawsuit highlights potential intellectual property disputes arising from the use of AI in financial underwriting, which could impact how such models are shared and protected.