CarMax Class Action Lawsuit Overview
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. It is captioned Jason Cap v. CarMax, Inc., et al., No. 1:25-cv-03602.
If you lost money on your CarMax investment, you are encouraged to submit your information using the form on this page. You may also email ross@bfalaw.com or call 212.789.3619.
Why is CarMax Being Sued for Securities Fraud?
CarMax, Inc. has been sued for securities fraud following significant stock drops resulting from potential violations of the federal securities laws. The declines in CarMax’s stock price caused significant losses to investors.
CarMax sells used cars. During the relevant period, CarMax 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. CEO Bill Nash unexpectedly departed CarMax on November 6, 2025.
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, CarMax 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.
CarMax 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.
Then, on November 6, 2025, CarMax announced the unexpected departure of CEO Bill Nash and a weak preliminary Q3 2025 outlook.
On this news, the price of CarMax stock dropped $9.93 per share, or roughly 24%, from $40.81 per share on November 5, 2025, to $30.88 per share on November 6, 2025.
CarMax (KMX) Stock Chart
NYSE online chart showing the CarMax (KMX) stock drops following the September and November 2025 announcements.
What is the CarMax Leadership Deadline?
You may ask the Court no later than January 2, 2026, 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.
How Do I Submit My Information?
If you lost money when CarMax securities dropped in price, you are encouraged to submit your information using the form on this page 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; there is no cost to you. Shareholders are not responsible for any court costs or expenses of the class action lawsuit. 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.
BFA 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.
BFA’s notable successes include a recovery of 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.
