Investors in CarMax, Inc. (NYSE: KMX) who experienced significant financial losses have the opportunity to lead a class action lawsuit against the company. Robbins Geller Rudman & Dowd LLP announced that individuals who purchased or acquired CarMax publicly traded securities between June 20, 2025, and November 5, 2025, can seek appointment as lead plaintiff. The deadline for this application is January 2, 2026.
The lawsuit, titled Cap v. CarMax, Inc., No. 25-cv-03602 (D. Md.), alleges that CarMax and certain executives violated the Securities Exchange Act of 1934. The firm claims that during the class period, executives misrepresented the company’s growth potential. This misrepresentation was particularly concerning as it suggested that the growth in the 2026 fiscal year was driven by customer speculation about tariffs rather than sustainable business practices.
On September 25, 2025, CarMax reported disappointing second-quarter results for fiscal year 2026, indicating a 5.4% decline in retail unit sales and a 6.3% drop in comparable store unit sales. The earnings per diluted share also fell from $0.85 the previous year to $0.64. Following this announcement, the stock price plummeted by approximately 20%.
The situation worsened on November 6, 2025, when CarMax disclosed the termination of its President and Chief Executive Officer, William D. Nash, effective December 1, 2025. This news coincided with a report from The Wall Street Journal, which stated that CarMax expected a significant decline in used car sales for the third quarter. Following the announcement of Nash’s termination, CarMax’s share price fell by more than 24%.
Investors interested in serving as lead plaintiff in the class action lawsuit can submit their information through Robbins Geller’s designated website. The lead plaintiff will represent all class members and can select a law firm of their choice to litigate the case. Importantly, an investor’s potential recovery is not contingent upon being the lead plaintiff.
Robbins Geller Rudman & Dowd LLP is recognized as a leading firm in securities fraud and shareholder litigation. The firm has consistently ranked high in securing financial relief for investors, recovering over $2.5 billion in 2024 alone. Their track record includes some of the largest securities class action recoveries in history.
As the CarMax situation continues to develop, affected investors are encouraged to act promptly to protect their interests. For additional information or to discuss the case, interested parties may contact attorneys J.C. Sanchez or Jennifer N. Caringal at Robbins Geller.
This case underscores the importance of transparency and accountability in financial reporting, particularly for companies operating in competitive sectors like automotive retail. As this class action lawsuit progresses, it may serve as a pivotal moment in the ongoing discourse surrounding corporate governance and investor protection.
