The CarMax, Inc. 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 November 5, 2025, inclusive (the “Class Period”). Captioned Cap v. CarMax, Inc., No. 25-cv-03602 (D. Md.), the CarMax class action lawsuit alleges that CarMax and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.
If you suffered losses as a result of your CarMax investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at info@ktmc.com.
CASE BACKGROUND:
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.
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, effective December 1, 2025. On this news, the price of CarMax stock fell $9,93 per share, or 24.33%, to close at $30.88 on November 6, 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 of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired CarMax securities during the Class Period to seek appointment as lead plaintiff in the CarMax class action lawsuit. 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.
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. For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.