CarMax Faces Class Action Lawsuit for Misleading Growth Claims
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 27 2025
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Source: Globenewswire
- Class Action Reminder: The Schall Law Firm alerts investors that CarMax is facing a class action lawsuit for violations of securities laws between June 20, 2025, and September 24, 2025, potentially leading to investor losses.
- False Growth Expectations: According to the complaint, CarMax overstated its growth prospects during early fiscal year 2026, which were actually driven by customer speculation about vehicle tariffs, rendering the company's public statements false and misleading throughout the class period.
- Investor Losses: When the market learned the truth about CarMax, investors suffered damages, and the Schall Law Firm encourages affected shareholders to contact them before January 2, 2026, to participate in the lawsuit.
- Legal Consultation Opportunity: The Schall Law Firm offers free legal consultations to help investors understand their rights, although the class action has not yet been certified, investors can still choose to participate to seek compensation for their losses.
Analyst Views on KMX
Wall Street analysts forecast KMX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMX is 40.92 USD with a low forecast of 27.00 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
2 Buy
12 Hold
3 Sell
Hold
Current: 39.310
Low
27.00
Averages
40.92
High
60.00
Current: 39.310
Low
27.00
Averages
40.92
High
60.00
About KMX
CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
