#United States #Robbins Geller #San Diego #CarMax #KMX

Overview of the Class Action Lawsuit

Robbins Geller Rudman & Dowd LLP has taken a significant step by announcing the potential for a class action lawsuit aimed at CarMax, Inc. (NYSE: KMX). This initiative is particularly crucial for investors who have incurred substantial losses from the company's publicly traded securities between June 20, 2025, and November 5, 2025. Investors wishing to lead this action have until January 2, 2026, to file their requests.

Background on CarMax, Inc.

Founded in 1993, CarMax has risen to prominence as a major retailer of used vehicles in the United States, boasting a unique business model that emphasizes customer experience and transparency. The company operates numerous locations across the nation, helping millions find reliable used vehicles. However, recent events have put this reputation on the line as investors question their growth prospects.

Allegations Against CarMax

The CarMax class action lawsuit, titled Cap v. CarMax, Inc., accuses the company and several of its top executives of violating the Securities Exchange Act of 1934. The allegations suggest that during the defined class period, CarMax oversold its growth prospects, leading to inflated stock valuations. It was revealed that the growth CarMax experienced was largely driven by consumer behavior influenced by speculation on car tariffs, rather than sustainable market growth.

On September 25, 2025, CarMax reported disappointing second-quarter fiscal results which included a noticeable decline in retail unit sales, dropping by 5.4%, and comparable store sales decreasing by 6.3%. Moreover, net earnings per diluted share fell to $0.64, a stark contrast to $0.85 from the previous year. Following these announcements, the stock price plummeted by approximately 20% as investors reacted to the unfavorable news.

On November 6, another shock hit the market when CarMax announced the termination of William D. Nash, the company’s President and CEO, effective December 1, 2025. This news, coupled with a report from The Wall Street Journal indicating expected plunges in third-quarter sales, further contributed to a dramatic decline in share value, which fell by over 24%.

The Lead Plaintiff Process

Under the Private Securities Litigation Reform Act of 1995, any investor who purchased or acquired CarMax's publicly traded securities during the class period may seek appointment as the lead plaintiff. The lead plaintiff typically holds significant financial interest in the case and will represent the interests of all class members. Notably, their choice of law firm to handle litigation is at their discretion, and one’s potential recovery does not hinge on this designation.

About Robbins Geller Rudman & Dowd LLP

Robbins Geller Rudman & Dowd LLP is recognized globally for its role in securities fraud and shareholder litigation. The firm has consistently ranked at the top of ISS Securities Class Action Services for recovering substantial monetary relief for investors. In an impressive year, such as 2024, the firm recovered over $2.5 billion for its clients in securities-related class actions, a leading figure in the industry.

With a dedicated team of around 200 lawyers operating from 10 offices, Robbins Geller is equipped to handle significant cases and has achieved some of the largest securities class action recoveries ever documented, including a whopping $7.2 billion recovery in the In re Enron Corp. Sec. Litig. case.

Conclusion and Next Steps for Investors

Investors who have experienced significant financial losses during the specified class period are urged to consider joining this class action lawsuit against CarMax. Filing for lead plaintiff status provides an avenue for holding the company accountable while potentially recovering losses incurred due to alleged securities fraud. Interested parties can find further information on the case and how to express their intent to participate through Robbins Geller’s designated communication channels.

For more details, investors can visit the firm’s dedicated page for this class action lawsuit or contact attorneys J.C. Sanchez or Jennifer N. Caringal directly via their provided contact information.