Indiana PRS Sues CarMax for Over $71 Million in Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Lawsuit Background: Indiana Public Retirement System has filed a securities class action against CarMax, alleging that the company misled investors about inadequate loan-loss reserves, resulting in over $71 million in investor losses during the class period from June to November 2025.
- Executive Accountability: The lawsuit names CarMax Executive Vice President Jon Daniels as an additional defendant, accusing him of misleading investors about the company's financial health, which exacerbates the crisis of confidence in CarMax.
- Stock Price Impact: Following disappointing sales figures and the termination of CEO William Nash, CarMax's stock plummeted by over 20% and 24% in September and November 2025, respectively, indicating severe market concerns regarding its financial stability.
- Investor Action: Affected investors must file for Lead Plaintiff status by January 2, 2026, to represent other victims in the class action, suggesting that this case could lead to broader legal and financial repercussions.
KMX
$38.45+Infinity%1D
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: 38.150
Low
27.00
Averages
40.92
High
60.00
Current: 38.150
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.
