CarMax Investor Suits Jockey for Lead as Jan. 2 Deadline Nears
Plaintiffs base their claims on a September loan‑loss disclosure plus assertions of tariff‑driven demand pull‑forward.
Overview
- Multiple securities class actions are pending, with at least one case filed in the U.S. District Court for the District of Maryland and several firms urging investors to seek lead‑plaintiff status by January 2, 2026.
- Complaints accuse CarMax of portraying temporary, tariff‑related demand as sustainable growth and of failing to fully reflect credit deterioration at CarMax Auto Finance.
- Plaintiffs highlight the company’s September 25, 2025 results showing an $142.2 million provision for loan losses, including a $71.3 million increase in estimated lifetime losses on existing loans, followed by a roughly 20% stock drop to $45.60.
- Firms advance differing class periods, including June 20–September 24, 2025 (Bragar, Faruqi), June 20–November 5, 2025 (Frank R. Cruz), and a broader March 5, 2024–October 8, 2025 window (Portnoy).
- A separate shareholder firm announced a derivative investigation for long‑term holders prior to June 20, 2025, while all filings note that the allegations remain unproven and no class has been certified.