Investors in CarMax, Inc. who experienced significant financial losses have been called to action by Robbins Geller Rudman & Dowd LLP. The firm has announced that those who purchased or acquired CarMax securities between June 20, 2025, and November 5, 2025, have until January 2, 2026, to apply for the role of lead plaintiff in a class action lawsuit against the company.
The lawsuit, filed under the case name Cap v. CarMax, Inc., No. 25-cv-03602 in the District of Maryland, accuses CarMax and its top executives of violating the Securities Exchange Act of 1934. According to the allegations, during the relevant period, the company exaggerated its growth potential, misleading investors while the actual growth was largely driven by short-term market conditions related to tariffs.
On September 25, 2025, CarMax released its second quarter results for fiscal year 2026, which highlighted a decline in key performance indicators. Retail unit sales decreased by 5.4%, comparable store unit sales fell by 6.3%, and net earnings per diluted share dropped to $0.64 from $0.85 the previous year. This revelation led to a sharp decline in CarMax’s share price, falling by approximately 20%.
The situation escalated on November 6, 2025, when CarMax announced the termination of its President and Chief Executive Officer, William D. Nash, effective December 1, 2025. This news was reported by multiple outlets, including a significant article in The Wall Street Journal, which stated that the company anticipated a substantial decrease in used car sales for the upcoming third quarter. Following this announcement, CarMax’s stock price plummeted by over 24%.
Investors interested in leading the class action must meet specific criteria. The Private Securities Litigation Reform Act of 1995 allows any individual who purchased CarMax securities during the Class Period to seek appointment as lead plaintiff. The lead plaintiff represents the interests of all class members and can choose a law firm to oversee the litigation.
Robbins Geller Rudman & Dowd LLP has established itself as a prominent firm in securities fraud and shareholder litigation. The firm’s track record includes recovering over $2.5 billion for investors in class action cases in 2024 alone, further solidifying its reputation in this field.
For those wishing to participate in the lawsuit as lead plaintiff, Robbins Geller encourages potential candidates to provide their details through their dedicated page or to contact attorneys directly. The firm assures that an investor’s eligibility to benefit from any future recovery is not contingent upon their status as lead plaintiff.
For further details regarding the class action lawsuit or to seek legal representation, interested parties can visit Robbins Geller’s website or contact their office directly in San Diego, California.
As the case develops, investors are advised to stay informed and consider their options carefully, given the potential implications for their investments in CarMax.
