Labaton Keller Sucharow LLP Files Securities Class Action Against CarMax, Inc. and Certain of Its Executives

NEW YORK–(BUSINESS WIRE)–Labaton Keller Sucharow LLP (“Labaton”) has filed a securities class action lawsuit (the “Complaint”) on behalf of its client Indiana Public Retirement System (“Indiana PRS”) against CarMax, Inc. (“CarMax” or the “Company”) (NYSE: KMX) and certain of its executives (collectively, “Defendants”). The Action, which is captioned Indiana Public Retirement System v. CarMax, Inc., No. 25-cv-01056 (E.D. Va. Dec. 23, 2025), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder on behalf of all persons and entities that purchased or otherwise acquired CarMax securities between June 20, 2025 and November 5, 2025, inclusive (the “Class Period”).

The Complaint is related to a previously filed action against CarMax captioned Cap v. CarMax, Inc., No. 25-cv-03602 (D. Md.) (the “Initial Action”). The Initial Action was brought on behalf of all persons and entities who purchased or otherwise acquired CarMax securities during the Class Period. The Complaint expands upon the Initial Action by naming CarMax Executive Vice President Jon Daniels as an additional Defendant and by adding allegations that CarMax misled investors about the adequacy of its loan-loss reserves and the value of its used car inventory.

Pursuant to the notice published on November 3, 2025, in connection with the filing of the Initial Action, investors seeking to serve as Lead Plaintiff in these related actions are required to file a motion for appointment as Lead Plaintiff by no later than January 2, 2026.

CarMax is a used-car retailer that operates approximately 250 locations throughout the United States. It provides financing for customer vehicle purchases based on management’s underwriting standards and maintains a loan loss reserve, which is adjusted periodically to reflect changes in credit risk and loan performance.

The Action alleges that Defendants misled investors by failing to disclose that: (1) CarMax’s 2022 and 2023 vintage loans were underperforming; (2) CarMax’s loss reserves were inadequate to cover these loans; (3) CarMax had an oversupply of vehicles at its lots in early 2025; (4) this oversupply caused substantial depreciation of its inventory; (5) CarMax’s mid-2025 sales boost was largely driven by customers rushing to purchase used cars amid concerns over potential new-car tariffs; and (6) based on the foregoing, Defendants materially overstated customer receivables, inventory values, and earnings, while misleading investors about the Company’s business, operations, and growth prospects.

Investors learned the truth about Defendants’ misconduct over the course of two disclosures beginning on September 25, 2025, when CarMax reported disappointing sales figures and disclosed a $71 million surge in loss provisions for 2022 and 2023 loans. On this news, the price of CarMax stock declined more than 20 percent. Then, on November 4, 2025, CarMax announced CEO William Nash’s termination and warned of further sales declines. On this news, the price of CarMax stock declined more than 24 percent.

If you purchased or otherwise acquired CarMax securities during the Class Period and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed no later than January 2, 2026. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.

If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Connor C. Boehme, Esq. of Labaton at +1 (212) 907-0780, or via email at [email protected]. You can view a copy of the Complaint online here.

Indiana PRS is represented by Labaton, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $4.5 trillion. Labaton’s litigation reputation is built on its half-century of securities litigation experience, more than ninety full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, Delaware, London, and Washington, D.C. More information about Labaton is available at labaton.com.

Contacts

Connor Boehme, Esq.

Labaton Keller Sucharow LLP

+1 (212) 907-0780

[email protected]