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CarMax Securities Case Expands After CEO Ouster and Weak Outlook

An amended filing extends coverage through Nov. 5 on claims executives inflated durable growth via tariff‑driven pull‑forward sales.

Overview

  • An investor class action, Cap v. CarMax, Inc., No. 25-cv-03602, is pending in the U.S. District Court for the District of Maryland.
  • The latest notice reports an amended complaint that broadens the class period to include purchases through Nov. 5, 2025.
  • On Nov. 6, CarMax said CEO Bill Nash will depart effective Dec. 1 and issued preliminary Q3 guidance of comparable unit sales down 8%–12% with EPS of $0.18–$0.36, and shares fell as much as 23%.
  • The suit follows Sept. 25 results showing EPS of $0.64 versus $0.85 a year earlier, retail units down 5.4% and comps down 6.3%, alongside a $142 million CAF loan‑loss provision and an ~11% year‑over‑year CAF revenue decline, which drove a roughly 20% stock drop.
  • Multiple firms are soliciting class members ahead of the Jan. 2, 2026 lead‑plaintiff deadline.