Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired CarMax, Inc. (“CarMax”) (NYSE: KMX) securities between June 20, 2025 and November 5, 2025, inclusive (the “Class Period”).
The Class Period begins on June 20, 2025, when CarMax issued a press release reporting the company’s first quarter fiscal year 2026 financial results, which highlighted a slew of positive results, including increased net earnings per diluted share, increased sales, and increased gross profit. On September 25, 2025, CarMax released its second quarter 2026 financial results and disclosed significant revenue and profit declines year over year. CarMax attributed its disappointing results primarily to actions required to “right size inventory” as well as a $71.3 million increase in loan loss provisions.
Then, before the market opened on November 6, 2025, CarMax filed with the SEC a Form 8-K which disclosed that CarMax’s Board of Directors terminated the employment of William D. Nash, the company’s President and Chief Executive Officer.On this news, the price of CarMax stock fell 24.33%.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Defendants recklessly overstated CarMax’s growth prospects when, in reality, its earlier growth in the 2026 fiscal year was a temporary benefit from customers buying cars due to speculation regarding tariffs; and (2) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On January 29, 2026, the Court appointed Lead Plaintiffs and Lead Counsel. This action is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.