CarMax, Inc. (NYSE: KMX): CarMax, Inc. has been sued for securities fraud after a significant stock drop resulting from potential violations of the federal securities laws. The decline in CarMax’s share price caused significant losses to investors. The class action lawsuit asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in CarMax securities. The class action is pending in the U.S. District Court for the District of Maryland and is captioned Jason Cap v. CarMax, Inc., et al., No. 1:25-cv-03602.
If you lost money on your investments in CarMax, you are encouraged to submit your information.
Why Was CarMax Sued for Securities Fraud?
CarMax sells used cars. During the relevant period, the Company touted the strong and sustainable demand for its cars, driven by factors such as a seamless customer experience.
As alleged, in truth, it appears that the announcement of U.S. tariffs imposed on cars provided a short-term boost to demand, as customers purchased cars prior to the tariffs taking effect.
BFA Law is also investigating whether CarMax properly assessed or reserved for its portfolio of car loans.
Why did CarMax’s Stock Drop?
On September 25, 2025, the Company reported disappointing financial results for the second quarter of its fiscal year 2026.
Specifically, CarMax announced sales declines across the board, including a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units.
The Company also posted a disappointing second quarter net income of about $95.4 million, down from $132.8 million over the prior year. A main reason for the declines, according to CarMax, was a “pull forward” in demand into the first fiscal quarter due to the announcement of tariffs.
On this news, the price of CarMax stock dropped $11.45 per share, or roughly 20%, from $57.05 per share on September 24, 2025, to $45.60 per share on September 25, 2025.
What is the CarMax Deadline?
You may ask the Court no later than January 2, 2026, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
Contact Us:
If you lost money when CarMax securities dropped in price, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212.789.3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
