CarMax, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against CarMax, Inc. (KMX)

If you purchased or acquired CarMax securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About CarMax

CarMax, headquartered in Richmond, Virginia, is a leading retailer of used vehicles in the United States. CarMax has also invested heavily in digital and omni-channel experiences, aiming to make car buying and selling more convenient for consumers.

The company’s management frequently credited “solid execution” and a “more stable environment for vehicle valuations” as drivers of its financial performance.

Potential Concerns Under Investigation

Lawyers are investigating whether CarMax may have made misleading statements or omitted material information regarding the true drivers behind its reported sales growth during the period from December 19, 2024 through September 24, 2025.

At the start of this period, CarMax’s management publicly attributed strong quarterly results to “positive momentum that we are driving across our diversified business model” and “solid execution and a more stable environment for vehicle valuations."

These statements appeared to suggest that CarMax’s internal strategies and operational strengths were responsible for its robust earnings per share and revenue growth.

However, legal professionals may examine whether CarMax adequately disclosed the impact of external factors. That includes, a surge in consumer demand driven by fears of impending U.S. auto tariffs.

Throughout the class period, CarMax’s public communications did not mention that the exceptional retail demand was largely generated by consumers “rushing to buy before tariffs,” a phenomenon widely reported in the industry.

Attorneys could investigate if the company’s omission of this information kept the stock price artificially high by attributing sales growth to internal business improvements rather than a one-time, tariff-driven demand spike.

The investigation may also focus on specific statements made by CarMax’s executives. For example, in the Q3 FY2025 earnings release on Dec. 19, 2024, CEO Bill Nash stated, “I am pleased with the positive momentum that we are driving across our diversified business model,” and credited “solid execution and a more stable environment for vehicle valuations” for the company’s performance.

In subsequent quarters, similar themes were repeated, with management emphasizing “continuing momentum” and “robust EPS growth,” seemingly attributing growth to core business improvements. Lawyers may investigate whether these statements were misleading in light of later admissions that the demand surge was temporary and linked to tariff fears.

Stock price movements during the class period could be a key focus of the investigation. On December 19, 2024, following the Q3 FY2025 earnings release, CarMax’s stock rose over 6 percent after reporting better-than-expected results.

However, on April 10, 2025, CarMax announced Q4 FY2025 results that missed earnings estimates, and the stock dropped approximately 7 percent in premarket trading.

The most significant decline occurred on September 25, 2025, when CarMax revealed Q2 FY2025 results showing retail used-unit sales fell 5.4 percent, comparable-store used-unit sales fell 6.3 percent, wholesale units fell 2.2 percent, and net income dropped to $95.4 million from $132.8 million year-over-year.

The stock price fell from $57.05 to $45.60; a drop of $11.45 per share, or about 20 percent. These losses were company-specific, as broader market indices moved little on the same day.

Legal professionals may further examine whether the company’s disclosures about the sustainability of its sales growth were adequate, given that the true cause of demand was widely reported in the industry and later acknowledged by CarMax itself.

Your Rights and Next Steps

If you purchased or held CarMax securities between December 19, 2024 and September 24, 2025 and suffered losses, you may have important legal rights. This is an active investigation by lawyers who are ready to help investors determine whether they may have claims for compensation.

The investigation is not yet a filed class action lawsuit, but it could lead to one if evidence supports potential securities violations.

Investors can participate in the investigation by submitting relevant information about their CarMax transactions and losses. By doing so, they may help build a potential case and ensure that their interests are represented if a class action is filed.

Participation in the investigation does not obligate investors to take further action, but it preserves their ability to seek compensation if a lawsuit proceeds.

It is important for investors to act quickly, as securities investigations are often time-sensitive. Preserving documentation of stock purchases, sales, and losses during the class period can be critical for any future claims.

You May Be Entitled to Compensation

Investors who purchased CarMax securities and suffered financial losses during the class period may be eligible to join any potential class action and seek compensation for their losses. Securities investigations move quickly, and waiting too long could affect your ability to recover funds.

To find out if you qualify and to join the investigation, complete the form below. Lawyers are ready to help evaluate your claim and guide you through the next steps.