CarMax Securities Case Heats Up as Class Period Extends to Nov. 5 and Jan. 2 Lead-Plaintiff Deadline Nears
Amended court filings allege investors were misled about sustainable growth after a September update revealed larger loan-loss provisions and weaker finance income.
Overview
- New notices state the putative class now covers purchasers from June 20, 2025 through November 5, 2025, reflecting an expanded period in amended complaints.
- Investors seeking to be appointed lead plaintiff must file by January 2, 2026 in the federal case pending in the District of Maryland, captioned Cap v. CarMax, Inc., No. 25-cv-03602.
- Plaintiffs allege CarMax overstated growth prospects tied to temporary tariff-driven demand and failed to fully disclose credit risks.
- On September 25, 2025, CarMax reported an 11.2% decline in CarMax Auto Finance income and a $142.2 million provision for loan losses, including higher lifetime loss estimates for 2022–2023 vintages.
- CarMax shares fell roughly 20% to close at $45.60 following the disclosure, and multiple firms including Kessler Topaz, ClaimsFiler/Kahn Swick & Foti, and Faruqi & Faruqi are soliciting potential lead plaintiffs.