Investors in CarMax, Inc. (NYSE: KMX) have the opportunity to lead a class action lawsuit against the company following substantial financial losses experienced during a specified period. According to Robbins Geller Rudman & Dowd LLP, those who purchased or acquired CarMax securities between June 20, 2025, and November 5, 2025, are encouraged to step forward by the deadline of January 2, 2026.
Background on the Class Action Lawsuit
The class action lawsuit, titled Cap v. CarMax, Inc., No. 25-cv-03602 (D. Md.), accuses CarMax and several of its top executives of violating the Securities Exchange Act of 1934. The allegations stem from claims that the company misrepresented its growth prospects during the specified class period.
Specifically, the lawsuit contends that CarMax’s reported growth was largely inflated and driven by temporary demand due to speculative customer behavior regarding tariffs. On September 25, 2025, CarMax disclosed a decline in its second-quarter fiscal results, revealing that retail unit sales dropped by 5.4% and comparable store unit sales fell by 6.3%. This led to a decrease in net earnings per diluted share from $0.85 the previous year to $0.64, triggering a decline in the company’s stock price by approximately 20%.
Key Events and Impact on Share Prices
Further compounding the situation, on November 6, 2025, CarMax announced the termination of William D. Nash, the company’s President and Chief Executive Officer, effective December 1, 2025. This news was accompanied by a report from The Wall Street Journal, indicating that CarMax anticipated a significant drop in used car sales for the upcoming third quarter. Following these announcements, the value of CarMax shares fell more than 24%.
Investors who suffered significant losses during this period may seek to serve as lead plaintiff in the class action. The Private Securities Litigation Reform Act allows any investor who purchased CarMax stocks within the defined class period to apply. The lead plaintiff typically holds the most substantial financial interest in the case and represents the interests of the entire class.
The chosen lead plaintiff will have the authority to select a law firm to handle the lawsuit. Importantly, an investor’s eligibility for any potential recovery does not hinge on their role as lead plaintiff.
Robbins Geller Rudman & Dowd LLP, a prominent law firm specializing in securities fraud and shareholder litigation, has a proven track record in handling high-stakes class action cases. The firm has been recognized as a leader in securing monetary relief for investors, recovering over $2.5 billion for clients in 2024 alone. With a team of 200 lawyers across ten offices, Robbins Geller is renowned for obtaining some of the largest recoveries in securities class action history.
For more information or to express interest in joining the class action lawsuit, investors can visit Robbins Geller’s official site or contact attorneys J.C. Sanchez or Jennifer N. Caringal at 800-449-4900 or via email at [email protected].
