Edelson Lechtzin LLP Launches Investigation into CarMax Over Securities Violations

Investigation of CarMax, Inc.

Overview

On October 3, 2025, Edelson Lechtzin LLP, a firm specializing in class action lawsuits, announced its investigation into CarMax, Inc. (NYSE: KMX). The inquiry is triggered by allegations concerning violations of federal securities laws due to CarMax potentially providing misleading financial information to investors.

Context of the Investigation

CarMax is the leading retailer of used vehicles in the United States, known for its customer-centric online buying experience and a vast network of physical stores across the country. However, recent financial disclosures have raised serious concerns about the company’s performance.

In its latest quarterly report released on September 25, 2025, CarMax revealed troubling data, including a year-over-year decline in both revenue and profit for the second quarter of the 2026 fiscal year. The company cited major drops in total revenue, total retail used vehicle revenue, and overall gross profit. This decline is largely attributed to ongoing adjustments in inventory as well as a substantial increase of $71.3 million in loan loss provisions, which exacerbated the financial woes of the company.

Following this disheartening news, CarMax's stock plunged significantly, experiencing a fall of approximately 20%, closing at $45.60 per share on the day of the report. This drastic drop understandably alarmed many investors.

Call for Investor Participation

Edelson Lechtzin LLP is reaching out to anyone who has suffered significant losses as investors in CarMax or those who may possess relevant information concerning the company's practices. The firm is eager to gather insights that could clarify the situation and assist in the investigation. Affected parties are encouraged to contact the firm through designated channels, ensuring that their concerns are registered and considered.

How to Contact

Investors can initiate contact directly through attorney Eric Lechtzin by calling 844-563-5550 or by emailing [email protected]. The firm is committed to supporting those who experienced financial setbacks following the adverse news regarding CarMax.

About Edelson Lechtzin LLP

Edelson Lechtzin LLP is a nationally recognized law firm with locations in Pennsylvania and California, focusing on a wide array of class action cases. Their expertise includes handling issues related to securities and investment fraud, antitrust violations, and consumer advocacy. The firm is dedicated to empowering clients and ensuring their voices are heard in legal matters affecting their financial interests.

The law firm warns that this announcement should not be construed as an attorney-client relationship unless a retained agreement has been established. Furthermore, no class action has been certified as of yet. Interested individuals maintain the option to either participate actively or remain uninvolved as class members while still being entitled to a potential future recovery depending on outcomes.

Conclusion

This unfolding investigation into CarMax by Edelson Lechtzin LLP highlights the importance of transparency and accountability in corporate practices. In light of recent events, investors are increasingly vigilant, and law firms specializing in class actions are pivotal in advocating for their rights. A clear message is sent: stakeholders' interests must be protected, and appropriate measures will be taken to address any potential misconduct.