NEW YORK, Dec. 24, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit was filed on December 23, 2025 in the United States District Court for the Eastern District of Virginia on behalf of all persons or entities who purchased or otherwise acquired CarMax, Inc. (“CarMax” or the “Company”) (NYSE: KMX) securities between June 20, 2025 and November 5, 2025, inclusive (the “Class Period”).
The Complaint alleges that throughout the Class Period, Defendants misled investors by failing to disclose that: (1) CarMax’s 2022 and 2023 vintage loans were underperforming; (2) CarMax’s loss reserves were inadequate to cover these loans; (3) CarMax had an oversupply of vehicles at its lots in early 2025; (4) this oversupply caused substantial depreciation of its inventory; (5) CarMax’s mid-2025 sales boost was largely driven by customers rushing to purchase used cars amid concerns over potential new-car tariffs; and (6) based on the foregoing, Defendants materially overstated customer receivables, inventory values, and earnings, while misleading investors about the Company’s business, operations, and growth prospects.
According to the Complaint the truth emerged through two corrective disclosures. The Complaint alleges that first, on September 25, 2025, CarMax reported weak fiscal Q2 2026 results, citing tariff -related pull-forward of demand that left the Company with excess inventory and elevated depreciation expense as sales slowed beginning in May. The Complaint continues to allege that CarMax also disclosed a $142 million loan-loss provision, including $71 million related to 2022-2023 loans. The Complaint states that on this news, CarMax’s stock price fell 20.1 percent. The Complaint continues to allege that then, on November 4, 2025, CarMax disclosed that it had terminated the employment of CEO William Nash and warned of a sharp decline in used-car sales in the current quarter. On this news, CarMax’s stock price fell an additional 24.3 percent.
Investors who purchased or otherwise acquired shares of CarMax should contact the Firm prior to the January 2, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
