CarMax Faces Class Action Lawsuit: Investors Given Deadline to Act Against Declining Shares

CarMax Faces Class Action Lawsuit: Action Needed for Investors

In an important development, Kahn Swick & Foti, LLC (KSF), a prominent law firm, has issued an alert concerning CarMax, Inc. (NYSE: KMX), notifying investors of a potential class action lawsuit. Designed for those who sustained significant losses during the trading period from June 20, 2025, to November 5, 2025, the lawsuit has arisen in light of allegations that the automotive retail giant failed to disclose crucial information, thus violating federal securities laws.

Why This Matters

If you purchased or acquired CarMax securities within the specified timeframe, it's imperative that you pay attention to this case. The deadline for filing lead plaintiff applications is fast approaching, set for January 2, 2026. This class action is currently pending in the United States District Court for the District of Maryland, and it represents a pivotal opportunity for investors to seek recourse for their economic losses.

Investors learned of the seriousness of the situation when CarMax released its Second Quarter Fiscal Year 2026 financial results on September 25, 2025. The report revealed a disheartening decline in sales figures — retail unit sales fell by 5.4%, comparable store unit sales dipped by 6.3%, and wholesale units were down by 2.2%. In a startling revelation, net earnings per diluted share also decreased from $0.85 the previous year to just $0.64.

In the wake of this news, CarMax’s stock price took a significant hit, plunging by approximately $11.50 per share, equating to a staggering 20.07% drop, leaving shares closing at $45.60 on that fateful day.

Legal Path Forward

For those potentially impacted by these revelations, there is a clear course of action. Shareholders are encouraged to reach out to Kahn Swick & Foti’s Managing Partner, Lewis Kahn, at their toll-free number 1-877-515-1850, or via email at [email protected]. Additional information about this case can also be found on their official website at https://www.ksfcounsel.com/cases/nyse-kmx/.

If you are considering stepping forward as a lead plaintiff in this class action, it's crucial to act quickly, as applications must be submitted before the impending deadline. The suite, titled Cap v. CarMax, Inc., No. 25-cv-03602, underscores the serious allegations against the leadership of CarMax for not revealing relevant information.

About Kahn Swick & Foti, LLC

As one of the leading boutique securities litigation law firms in the United States, Kahn Swick & Foti, LLC has earned a reputation for its adept handling of securities litigation. Co-founder Charles C. Foti, Jr., who also served as the Attorney General of Louisiana, has guided the firm in successfully representing both public and private investors seeking recovery for losses stemming from corporate governance failures and misleading actions by publicly traded companies. KSF has physical offices located in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.

Given KSF's previous recognitions and their ranking within the top 10 firms nationally based on total settlement value by SCAS, their involvement in this case may significantly benefit affected shareholders.

With the financial landscape constantly evolving and the stakes high, CarMax investors should stay actively engaged and informed. The timeline for recovery is tight, and prompt action can be critical in protecting investment interests. Always remember: in these uncertain times, informed investors are empowered investors.