SAN FRANCISCO, Dec. 02, 2025 (GLOBE NEWSWIRE) -- National shareholder rights law firm Hagens Berman reminds investors that the deadline to move the Court for appointment as lead plaintiff in the securities class action lawsuit against CarMax, Inc. (NYSE: KMX) is January 2, 2026.
The lawsuit alleges that CarMax and its executives provided materially false and misleading information by failing to disclose that the strong growth touted in Q1 2026 was merely a temporary, unsustainable “pull forward” of customer demand and that its loan portfolio (CAF) was facing significant, undisclosed risks.
“Our investigation focuses on whether CarMax’s executives prioritized short-term optics over transparency, by claiming robust growth that was allegedly driven by a one-time tariff event,” said Reed Kathrein, the Hagens Berman partner leading the litigation. “We are scrutinizing the significant increase in the loan loss provision for the CAF portfolio, which may suggest undisclosed weaknesses in the core business. Investors in CarMax who suffered significant losses during the Class Period should contact the firm now to discuss their rights.”
Legal Analysis: Undisclosed Business Weakness & Risk
The complaint details the alleged gap between the Company’s public statements about sustainable growth and the undisclosed material adverse facts regarding its operational and financial stability.
| Disclosure Event | Impact on KMX Stock Price | Alleged Securities Violation Revealed |
| Q2 2026 Earnings (Sept. 25, 2025) | Stock fell 20%; comparable unit sales down 6.3%. | Misrepresenting the nature of demand; failing to disclose the unsustainable “pull forward” effect of tariffs. |
| CEO Departure & Outlook (Nov. 6, 2025) | Stock fell 24%; weak Q3 guidance (8%-12% decline). | Undisclosed underlying business weakness and lack of sustainable growth prospects. |
| CAF Loan Portfolio | $142 Million increase in loan loss provision. | Misrepresenting the quality and risk inherent in the CarMax Auto Finance (CAF) loan portfolio. |
The lawsuit specifically covers investors who purchased CarMax securities between June 20, 2025, and November 5, 2025. The two alleged disclosures led to dual stock crashes, demonstrating the magnitude of the alleged misrepresentations.
Next Steps: Contact Partner Reed Kathrein Today
Hagens Berman has a proven track record, securing over $325 billion in settlements for investors and consumers.
Mr. Kathrein is actively advising investors who purchased KMX shares during the Class Period and suffered significant losses due to the undisclosed risks regarding the “pull forward” demand and the CAF loan portfolio.
The Lead Plaintiff Deadline is January 2, 2026.
TO SUBMIT YOUR CARMAX (KMX) STOCK LOSSES NOW, PLEASE USE THE SECURE FORM BELOW:
- Submit your losses now
- Contact: Reed Kathrein, 844-916-0895 or email: KMX@hbsslaw.com
If you’d like more information and answers to frequently asked questions about the CarMax case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding CarMax should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email KMX@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
