Overview

A class action lawsuit has been filed against CarMax, Inc. (“CarMax”, or the “Company”) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws. The Company’s common stock trades on the New York Stock Market (the “NYSE”) under the ticker symbol “KMX”.

The CarMax class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired publicly traded CarMax securities between June 20, 2025, and September 24, 2025, both dates inclusive, (the “Class Period”).

CarMax sells used cars. It describes itself as the “nation’s largest retailer of used vehicles.”

The lawsuit alleges that CarMax, Inc. and its executives misled investors about the company’s growth prospects and the sustainability of its strong financial results in early fiscal year 2026. On June 20, 2025, CarMax issued a press release highlighting increased earnings per share, sales, and gross profit, and executives publicly claimed that the company’s performance demonstrated the strength of its “best-in-class” omni-channel business model and its ability to deliver continued year-over-year earnings growth “for years to come.”

According to the lawsuit, these statements were materially false and misleading because the company’s strong first-quarter results were not the result of operational strength or sustainable demand but were instead driven by temporary, tariff-related consumer speculation that prompted a surge in car purchases. Despite knowing that this was the cause of the short-term sales boost, defendants allegedly continued to portray CarMax’s performance as durable and reflective of long-term growth.

During the company’s June 20, 2025, earnings call, defendants reiterated that CarMax’s sales acceleration was due both to favorable macroeconomic factors and to the company’s internal improvements in pricing, inventory management, and efficiency. They asserted that nothing had changed their positive outlook for the remainder of the year. However, the lawsuit claims these assurances lacked a reasonable basis, as CarMax’s sales momentum was temporary and unsustainable once the effects of tariff speculation subsided.

The truth emerged on September 25, 2025, when CarMax released its second-quarter results, reporting a 5.4% decline in retail unit sales, a 6.3% drop in comparable store sales, and a 2.2% decrease in wholesale units. Earnings per diluted share also fell to $0.64 from $0.85 a year earlier. In the accompanying earnings call, defendants admitted that the prior quarter’s tariff-driven sales uptick had inflated inventory levels and led to about $1,000 per vehicle in depreciation, which reduced price competitiveness and weakened second-quarter performance.

Following these disclosures, CarMax’s stock price fell sharply, dropping 20.07% to close at $45.60 per share on September 25, 2025, and declining another 1.62% the next day to close at $44.86. The lawsuit alleges that, as a result of defendants’ false and misleading statements and omissions, investors suffered significant losses when the truth about the company’s temporary and unsustainable growth was revealed.

*          *          *

If you purchased or otherwise acquired publicly traded CarMax securities between June 20, 2025, and September 24, 2025, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as lead plaintiff in the CarMax class action lawsuit is January 2, 2026.