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. 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.
Current Status of Case:
On January 2, 2026, Motions to Appoint Lead Plaintiff and Lead Counsel were filed. 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.