#United States #New York #Securities Law #Faruqi & Faruqi #CarMax

Faruqi & Faruqi Calls for CarMax Investors' Action

Faruqi & Faruqi, LLP, one of the most prominent securities law firms in the United States, has recently announced a significant call to action for investors involved with CarMax, Inc. With a deadline approaching on January 2, 2026, shareholders who suffered losses from their investment in CarMax between June 20, 2025, and September 24, 2025, are encouraged to consider joining a class action lawsuit against the company.

This firm has a notable history of representing investors and has successfully recovered substantial monetary settlements since its inception in 1995. The allegations against CarMax are severe, claiming that the company and its executives made false or misleading claims regarding the company's growth potential. The lawsuit alleges that CarMax’s past growth was inaccurately portrayed as sustainable, while it was allegedly driven by temporary factors such as customer speculation around tariffs.

Background of the Lawsuit

On September 25, 2025, CarMax announced its second-quarter financial results for the fiscal year 2026, revealing a significant decrease in income from CarMax Auto Finance. This drop has been attributed to increased provisions for loan losses, signaling poorer performance in their loan portfolio from past years. As this negative information came to light, the company’s stock price fell dramatically—about 20%—indicating a sharp decline in investor confidence and market value.

The lawsuit claims that the company’s executives misled investors about the state of CarMax's financial health and the broader prospects of its operations. By doing so, they failed to disclose critical details affecting potential and existing investors, leading to financial consequences for those who purchased shares based on the erroneous information. The class action aims to bring accountability for these actions.

What Should Investors Do?

Investors who wish to take part in this legal action should contact Faruqi & Faruqi Senior Partner James (Josh) Wilson. He is available to discuss options and the implications of joining the lawsuit for concerned shareholders. The firm helps investors understand their legal rights and participates actively in this type of litigation.

Faruqi & Faruqi emphasizes that every member in the proposed class has the option to either become an active participant and direct the case or simply remain involved as an absent class member. Notably, the decision to take on the lead plaintiff role does not impact one's right to any potential recovery from the lawsuit.

Contact Information

Anyone with information or insights regarding CarMax's activities, including whistleblowers and former employees, is also strongly encouraged to come forward. This outreach is a critical component of building the case against the company.

To find out more about the current status of the class action lawsuit or to seek legal representation, investors can visit Faruqi & Faruqi’s website or directly contact partner Josh Wilson at either 877-247-4292 or 212-983-9330 (Ext. 1310).

As the legal proceedings unfold, updates will continue to be posted on various platforms including LinkedIn, X (formerly Twitter), and Facebook. Investors are urged to stay informed and proactive as the deadline approaches, ensuring they do not miss their opportunity for potential recovery.

Faruqi & Faruqi remains dedicated to providing competent representation for investors and advocating for fairness in the securities marketplace.