CarMax, Inc.

On September 25, 2025, CarMax released its second quarter 2026 financial results, disclosing significant revenue and profit declines year over year, including: a revenue decline of 6.0%, total retail used vehicle revenues decline of 7.2%, and a total gross profit decline of 5.6%. The Company attributed its results primarily to actions required to “right size inventory” as well as a $71.3 million increase in loan loss provisions.

On this news, the Company’s share price fell $11.45, or 20.1%, to close at $45.60 per share on September 25, 2025, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Defendants recklessly overstated CarMax’s growth prospects when, in reality, its earlier growth in the 2026 fiscal year was a temporary benefit from customers buying cars due to speculation regarding tariffs; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.