1. Hagens Berman urges KMX investors to act before January 2 lead plaintiff deadline. 2. CarMax faces lawsuit alleging misleading growth prospects led to a 44% stock decline. 3. Two major stock crashes linked to undisclosed operational issues and CEO termination. 4. Investors are advised to contact Hagens Berman for rights discussions. 5. Lawsuit centers on alleged misrepresentations and risks in auto finance portfolio.
FAQ
Why Very Bearish?
The significant stock drops tied to alleged misconduct suggest serious investor concerns. Past instances of legal troubles have similarly caused declines in stock prices.
How important is it?
The article details a significant lawsuit that could influence investor sentiment severely. Historical data suggests legal challenges often correlate with immediate stock value declines.
Why Short Term?
Immediate effects may be felt as investors reassess their positions amid lawsuit publicity. Similar past litigations have led to short-term price volatility.
Partner Reed Kathrein Urges KMX Investors to Contact Firm Before January 2, 2026 Lead Plaintiff Deadline
SAN FRANCISCO, Dec. 15, 2025 /PRNewswire/ -- National investor rights law firm Hagens Berman reminds investors that the Lead Plaintiff Deadline in the securities class action lawsuit against CarMax, Inc. (NYSE:KMX) -- January 2, 2026 – is rapidly approaching.
The lawsuit alleges that CarMax and certain of its executives misled investors about the true stability and growth prospects of its core business, leading to two separate and massive stock crashes. Hagens Berman urges investors who suffered substantial losses—particularly those affected by the total 44% stock decline following the September earnings miss and the November CEO termination—to contact the firm now to discuss their rights.
Class Period: Investors who purchased CarMax (KMX) securities between June 20, 2025, and November 5, 2025.
Lead Plaintiff Deadline: January 2, 2026.
The Dual Focus of the CarMax (KMX) Securities Fraud Suit
The complaint highlights two central, undisclosed issues that allegedly led to the stock's inflation and ultimate collapse:
Alleged | Alleged Misrepresentations | Alleged Adverse Impact on |
Unsustainable | CarMax touted robust Q1 2026 growth, failing to | Distortion of core retail demand |
CarMax Auto | Management assured investors they "feel good | Massive and unexpected |
Underlying | Executives allegedly assured investors of | CEO termination and drastic |
The complaint alleges that the truth was disclosed in two stages: First, on September 25, 2025, CarMax announced dismal Q2 results, including a 24% net EPS fall and a surprising $142 million loan loss provision—a 40% sequential jump. The stock fell 20%. Second, on November 6, 2025, the unexpected termination of the CEO amid weak Q3 guidance prompted another severe stock decline.
"The January 2nd deadline is critical for CarMax investors seeking a leadership role in this case," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the alleged claims. "This lawsuit alleges not one, but two, massive stock drops caused by the alleged concealment of operational truths: that sales were artificially driven by a tariff event, and that the risk in the lending portfolio was escalating out of control. We are actively investigating whether management falsely assured investors of growth while the foundation of the business was allegedly showing these deep cracks."
What You Can Do: If you purchased CarMax (KMX) securities during the Class Period and suffered significant losses, you are encouraged to contact Hagens Berman immediately.
TO SUBMIT YOUR CARMAX (KMX) STOCK LOSSES NOW, PLEASE USE THE SECURE FORM BELOW:
- KMX Loss Submission
- Contact: Reed Kathrein, 844-916-0895 or email: KMX@hbsslaw.com
- Video: www.youtube.com/watch?v=t7pZGIVuGGo&feature=youtu.be
If you'd like more information and answers to frequently asked questions about the CarMax case and our investigation, visit Hagans Berman's KMX case-specific page: www.hbsslaw.com/investor-fraud/kmx
Whistleblowers: Persons with non-public information regarding CarMax should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email KMX@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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SOURCE Hagens Berman Sobol Shapiro LLP