Investors in CarMax, Inc. (NYSE: KMX) are being invited to participate in a class action lawsuit following significant losses incurred during the company’s recent trading period. Robbins Geller Rudman & Dowd LLP announced that individuals who purchased CarMax securities between June 20, 2025, and November 5, 2025, have until January 2, 2026, to apply for the position of lead plaintiff in the case.
The 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 firm alleges that during the specified class period, the defendants made misleading statements regarding the company’s growth potential, suggesting that robust sales were sustainable when they were, in fact, driven by temporary factors related to customer speculation on tariffs.
The allegations intensified following CarMax’s second quarter fiscal results on September 25, 2025. The company reported a 5.4% decrease in retail unit sales and a 6.3% drop in comparable store unit sales, with net earnings per diluted share falling to $0.64 from $0.85 the previous year. Following this announcement, CarMax’s share price plummeted by approximately 20%.
The situation worsened when, on November 6, 2025, CarMax revealed that it had terminated the employment of William D. Nash, the company’s President and Chief Executive Officer. This decision, effective December 1, 2025, coincided with a report from The Wall Street Journal indicating that the company anticipated a significant decline in used car sales for the upcoming quarter. The market reacted sharply, with shares dropping more than 24% in response to the news.
Individuals who suffered financial losses during this period may seek to serve as lead plaintiff, representing the interests of the class. According to the Private Securities Litigation Reform Act of 1995, the lead plaintiff is typically the person with the greatest financial interest in the case and must also be a typical and adequate representative of the class.
Robbins Geller has established a strong reputation in the realm of securities litigation. The firm has consistently ranked among the top legal practices in securing monetary relief for investors, recovering over $2.5 billion in 2024 alone from securities-related class action cases. This performance emphasizes their capability to handle complex cases like that of CarMax.
Investors interested in joining the class action can submit their information through the law firm’s dedicated webpage or contact attorneys J.C. Sanchez or Jennifer N. Caringal directly.
The outcome of this case could have significant implications for both CarMax and its investors, highlighting the importance of transparency and accountability in financial reporting. For more detailed information about the class action and the process to participate, visit the Robbins Geller website.
