CarMax (KMX) Securities Fraud Lawsuit: Key Deadlines Approaching for Investors
On December 18, 2025, the national investor rights law firm Hagens Berman announced pressing details regarding a securities class action lawsuit against CarMax, Inc. (NYSE: KMX). The Lead Plaintiff Deadline for this significant case is January 2, 2026. The lawsuit claims that CarMax executives misrepresented the stability and growth prospects of the company, leading to substantial stock price declines. Investors who have experienced substantial losses—especially those affected by a total decline of 44% in the company's stock—are urged to reach out to Hagens Berman to discuss their legal options.
Details of the CarMax (KMX) Class Action Lawsuit
This lawsuit centers around the class period for investors who purchased CarMax (KMX) securities between June 20, 2025, and November 5, 2025. Two significant events precipitated the lawsuit:
- September 2025 earnings miss
- Termination of the CEO in November 2025
The stock's value dropped sharply following both events, emphasizing the alleged misleading information provided by CarMax.
Allegations of Concealment and Misrepresentation
The lawsuit points to key factors that contributed to the inflation of KMX stock prices before their subsequent collapse:
- Unsustainable Demand: CarMax reported impressive growth figures for Q1 2026, without revealing that the reported demand was a temporary pull-forward due to customers preemptively buying to avoid impending tariffs.
- Risk in the Auto Finance Portfolio: CarMax Auto Finance (CAF) management claimed they were comfortable with their loan reserve but faced an unexpected increase in Loan Loss Provision of $142 million, indicating significant credit risk and impacting future earnings.
- Underlying Business Weakness: Executives assured investors of years of earnings growth, yet the sudden CEO termination and drastic cuts to future guidance suggested systemic issues within the company.
Disclosure of Truth and Impact on Stock Performance
The truth concerning these issues supposedly emerged in two critical phases:
- On September 25, 2025, CarMax revealed disappointing Q2 results, which included a 24% decline in net EPS and a significant $142 million Loan Loss Provision—representing a 40% increase from previous quarters. This announcement led to a 20% drop in stock price.
- On November 6, 2025, the unexpected firing of the CEO, combined with weak Q3 guidance, caused another drastic decline in stock price.
Reed Kathrein, a partner at Hagens Berman, remarked, “The January 2nd deadline is critical for CarMax investors seeking a leadership role in this case. The lawsuit alleges two massive stock drops caused by hidden operational truths.”
Investor Actions: Your Rights and Next Steps
If you purchased CarMax (KMX) securities during the class period and incurred significant losses, it is vital to act swiftly. Investors are encouraged to reach out to Hagens Berman to secure their rights and potentially participate in the ongoing lawsuit. To submit your losses, please utilize the secure form provided below:
- KMX Loss Submission
- Contact: Reed Kathrein
- Phone: 844-916-0895
- Email: KMX@hbsslaw.com
For more information regarding this case, including FAQs, visit Hagens Berman’s KMX case-specific page.
Whistleblower Opportunities
Individuals possessing non-public information about CarMax are encouraged to consider their options, including participating in the SEC Whistleblower program. Whistleblowers may receive rewards up to 30% of any successful recovery made by the SEC. For more details, contact Reed Kathrein at 844-916-0895 or via email at KMX@hbsslaw.com.
About Hagens Berman
Hagens Berman is a globally recognized plaintiffs’ rights litigation firm focusing on corporate accountability. With a robust practice representing investors, whistleblowers, and consumers, the firm has achieved recoveries exceeding $2.9 billion in various cases. For further information and updates, visit hbsslaw.com and follow Hagens Berman on social media at @ClassActionLaw.
