CarMax Securities Suit Enters Lead-Plaintiff Phase as Jan. 2 Deadline Nears
An amended complaint now extends coverage to Nov. 5 to capture losses from a September earnings shock followed by a leadership change.
Overview
- Multiple plaintiff firms are urging CarMax investors to file motions for lead-plaintiff status by January 2, 2026 under the PSLRA.
- Class-period definitions differ across filings, with some notices ending on September 24, 2025 and others extending through November 5, 2025 via an amended complaint.
- Complaints allege CarMax overstated sustainable demand by benefiting from tariff-driven pull-forward purchases and downplayed rising credit risk at CarMax Auto Finance.
- On September 25, 2025, CarMax reported a $142.2 million loan-loss provision and an 11.2% decline in CAF income, after which the stock fell about 20% to $45.60 on September 26.
- Some filings identify a second corrective event tied to the November CEO departure and weak signals for upcoming results, and the litigation remains at the pre-certification stage.