CarMax, Inc. (NYSE: KMX) Securities Fraud Class Action

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 May 15, 2026, Defendants filed a Motion to Dismiss the Amended Complaint. The Motion is currently being briefed by the parties.  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 [email protected]. 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.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.