LEAD PLAINTIFF DEADLINE IS JANUARY 2, 2026.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit was filed on behalf of those who purchased or otherwise acquired CarMax, Inc. (“CarMax”) (NYSE: KMX) securities between June 20, 2025, and September 24, 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. In the release, CarMax highlighted a slew of positive results, including increased net earnings per diluted share, increased sales, and increased gross profit. CarMax also touted its “earnings growth model, which is underpinned by our best-in-class omni channel experience, the diversity of our business, and our sharp focus on execution,” and indicated that CarMax was positioned “to continue to drive sales, gain market share, and deliver significant year-over-year earnings growth for years to come.”
On September 25, 2025, CarMax released its second quarter 2026 financial results and disclosed significant revenue and profit declines year over year, including a revenue decline of 6.0%, total retail used vehicle revenues decline of 7.2%, and a total gross profit decline of 5.6%. 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. On this news, CarMax’s share price fell $11.45, or 20.1%, to close at $45.60 per share on September 25, 2025.
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, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.