Investors in CarMax, Inc. (NYSE: KMX) who incurred significant losses during the period from June 20, 2025 to November 5, 2025, have a pressing opportunity to take action. Robbins Geller Rudman & Dowd LLP has announced that these investors can seek appointment as lead plaintiff in a class action lawsuit against the company. This legal action, titled Cap v. CarMax, Inc., is currently filed in the U.S. District Court for the District of Maryland under case number No. 25-cv-03602.
The deadline for potential lead plaintiffs to respond is set for January 2, 2026. Those who suffered substantial financial losses during the specified class period can submit their information via the law firm’s website or contact attorneys J.C. Sanchez and Jennifer N. Caringal directly.
Allegations Against CarMax Executives
The class action lawsuit makes serious allegations against CarMax and several of its top executives, claiming violations of the Securities Exchange Act of 1934. The complaint asserts that throughout the class period, the defendants misrepresented the company’s growth potential. In reality, the growth observed in the early part of the 2026 fiscal year was reportedly driven by temporary factors, including speculation surrounding tariffs that influenced consumer behavior.
On September 25, 2025, CarMax disclosed its second quarter fiscal results, revealing a 5.4% decline in retail unit sales and a 6.3% drop in comparable store unit sales compared to the previous year. The company’s net earnings per diluted share fell to $0.64, down from $0.85. Following this announcement, CarMax’s stock price experienced a sharp decline of approximately 20%.
Further turmoil ensued on November 6, 2025, when CarMax announced the termination of William D. Nash, the company’s President and Chief Executive Officer, effective December 1, 2025. This decision was reported in an article by The Wall Street Journal, which also indicated that CarMax anticipated significant reductions in used car sales for the third quarter. In response to this news, CarMax shares plummeted by more than 24%.
Role of the Lead Plaintiff
Under the Private Securities Litigation Reform Act of 1995, any investor who purchased or acquired CarMax securities during the class period can strive for the role of lead plaintiff. This position is typically awarded to the individual or entity that holds the largest financial stake in the class action’s outcome and is representative of the class members.
The lead plaintiff plays a crucial role in directing the lawsuit and may choose a law firm to represent the class. Importantly, participation as a lead plaintiff does not affect an investor’s eligibility for any potential recovery from the lawsuit.
About Robbins Geller
Robbins Geller Rudman & Dowd LLP stands out as a premier law firm in the realm of securities fraud and shareholder litigation. For four of the past five years, it has been recognized as the top firm for securing monetary relief for investors, according to ISS Securities Class Action Services. In 2024 alone, the firm recovered over $2.5 billion for investors in securities-related class actions, significantly outpacing its competitors.
With a workforce of around 200 lawyers across ten offices, Robbins Geller is one of the largest plaintiffs’ firms globally. Its attorneys have been instrumental in securing some of the most substantial recoveries in securities class action history, including a record-setting $7.2 billion in the In re Enron Corp. Sec. Litig. case.
For further details or to explore participation in the CarMax class action lawsuit, interested parties can visit the Robbins Geller website or reach out to the firm directly.
