Sonic Automotive, 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 Sonic Automotive, Inc. (SAH)

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

About Sonic Automotive

Sonic Automotive is a nationwide automotive retailer headquartered in Charlotte, North Carolina. The company operates a network of franchised dealerships and pre-owned vehicle stores offering new and used vehicles, parts, service, and finance and insurance products.

In 2025, Sonic Automotive expanded its operations through acquisitions, including becoming the largest Jaguar Land Rover retailer in the United States.

Potential Concerns Under Investigation

Attorneys are reviewing whether Sonic Automotive and certain executives made false or misleading statements or failed to disclose material information between June 30, 2025, and October 23, 2025.

During this period, Sonic Automotive repeatedly highlighted record revenue and profit growth. On July 25, 2025, the company reported second-quarter record total revenues of $3.7 billion and a 12% increase in gross profit. Executives also emphasized strong financial results and strategic growth tied to the company’s new Jaguar Land Rover dealership acquisitions.

However, those assurances were called into question on October 23, 2025, when Sonic Automotive released its third-quarter results showing a 37% year-over-year decline in net income to $46.8 million and a 38% drop in earnings per share to $1.33. Management attributed the shortfall to a significant increase in medical expenses and a higher effective income-tax rate.

Executives later explained that elevated medical costs alone increased SG&A expenses by about $0.50 per share.

Following this disclosure, Sonic Automotive’s stock price fell 15.9%, dropping $12.36, from closing at $77.84 on October 22 to $65.48 on October 23, 2025, causing substantial losses to investors.

Lawyers are investigating whether Sonic Automotive adequately disclosed rising cost pressures, including medical-benefit expenses and tax-rate impacts, before the third-quarter report revealed their full effect.

Your Rights and Next Steps

This is an ongoing investigation and not a filed lawsuit. Investors who purchased or otherwise acquired Sonic Automotive securities between June 30, 2025, and October 23, 2025, and suffered losses may have legal rights. If evidence shows that investors were misled, the case could lead to a class-action lawsuit to recover damages for affected shareholders.

Lawyers are available to help investors review their options and determine whether they qualify to participate. There is no cost or obligation to join the investigation, and participation is confidential.

You May Be Entitled to Compensation

Securities investigations are time-sensitive, and acting promptly can help protect your rights. If you purchased Sonic Automotive securities between June 30, 2025 and October 23, 2025, you may be eligible to join any potential class action and seek compensation.

To get started, complete the form below to join the investigation.