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Faruqi & Faruqi Investigates Claims on Behalf of CarMax Investors

Faruqi & Faruqi, LLP, a prominent national securities law firm, has recently announced that it is launching an investigation into potential claims concerning CarMax, Inc. (NYSE: KMX). This follows significant losses experienced by investors during a crucial timeframe from June 20, 2025, to September 24, 2025, which has raised numerous legal questions regarding the company's earnings reports and public statements. Investors who have encountered financial setbacks within this period are encouraged to reach out directly to James (Josh) Wilson, a Securities Litigation Partner at the firm, for guidance and support on their legal rights.

The Allegations

The firm alleges that CarMax and its executives may have violated federal securities laws by making misleading statements that overstated the company's growth potential. Specifically, it is claimed that executives exaggerated the company's financial health, failing to disclose vital information regarding a downturn in growth prospects. These assertions suggest that the growth observed in fiscal year 2026 was not sustainable but rather a temporary spike fueled by speculative buying related to anticipated tariff changes.

On September 25, 2025, CarMax released its second quarter financial results, revealing alarming figures such as an 11.2% decrease in income from its Auto Finance segment, alongside a troubling $142.2 million provision for loan losses—a significant increase from the previous year. This revelation subsequently led to a drastic decline in CarMax’s stock price, plummeting approximately 20% from its previous close, raising the stakes for affected investors.

Important Legal Deadlines

As the situation unfolds, investors should be aware of the impending deadline of January 2, 2026. This date marks the final opportunity for individuals to seek the role of lead plaintiff in a federal securities class action lawsuit against CarMax. The lead plaintiff will represent the interests of fellow investors, assisting in guiding the litigation’s direction and decisions.

Next Steps for Investors

Faruqi & Faruqi urges any individuals who may have pertinent information regarding CarMax's practices—whether they are shareholders, whistleblowers, or former employees—to come forward and assist the investigation. The firm emphasizes the assurance of confidentiality for all communications, thereby encouraging potential witnesses to share their insights without fear.

To learn more about the current investigation into CarMax and the steps for participation, interested parties should visit Faruqi & Faruqi's website or contact Josh Wilson directly at either 877-247-4292 or 212-983-9330 (Ext. 1310).

The firm, founded in 1995, boasts a strong reputation in recovering substantial compensation for investors who have suffered losses due to alleged misconduct by corporations. With its offices strategically located across New York, Pennsylvania, California, and Georgia, Faruqi & Faruqi continues to stand as a beacon of support for securities law violations.

Conclusion

As this investigation progresses, it remains crucial for investors affected by the financial discrepancies at CarMax to take proactive steps. Engaging with knowledgeable legal counsel could prove vital in navigating this complex landscape, especially as deadlines approach. Faruqi & Faruqi is committed to delivering robust legal support and ensuring that investor rights are enforced and protected throughout this process.