Investor Firms Step Up Bid to Lead CarMax Securities Case as Jan. 2 Deadline Looms
Investor notices spotlight alleged misstatements tied to a tariff‑driven demand pull‑forward plus higher loan‑loss reserves preceding steep stock drops.
Overview
- Multiple plaintiff firms, including Hagens Berman, Rosen, KSF, Schall, DJS, Faruqi, and the Law Offices of Frank R. Cruz, are soliciting CarMax investors ahead of the January 2, 2026 lead‑plaintiff deadline.
- The litigation is pending in the U.S. District Court for the District of Maryland as Cap v. CarMax, Inc., No. 25‑cv‑03602, and no class has been certified.
- Filings claim CarMax overstated sustainable retail demand, with growth allegedly boosted by a temporary pull‑forward tied to announced auto tariffs.
- Complaints also target CarMax Auto Finance disclosures, highlighting a $142 million loan‑loss provision reported on September 25, 2025 and a decline in CAF income cited in company results.
- Plaintiffs point to two corrective events: the September 25, 2025 earnings release that triggered roughly a 20% share drop and a further decline following the November 6, 2025 CEO removal and soft outlook, with class periods varying by firm.