Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant stock drop attributed to potential violations of federal securities laws [1][2]. Group 1: Lawsuit Details - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [2]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [2]. Group 2: Company Performance and Stock Impact - CarMax reported disappointing financial results for Q2 FY 2026, including a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [5]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million the previous year [5]. - Following the announcement of these results, CarMax's stock dropped $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [6]. - An unexpected departure of CEO Bill Nash on November 6, 2025, and a weak preliminary Q3 2025 outlook led to an additional stock drop of over 24% [6]. Group 3: Market Context - CarMax's previous claims of strong demand were allegedly inflated due to a temporary boost from U.S. tariffs on cars, which led to a "pull forward" in demand [3][5]. - The lawsuit and stock performance issues highlight potential concerns regarding the company's assessment of its portfolio of car loans [4].

Core Points - Class actions have been initiated on behalf of stockholders of DexCom, Inc. and CarMax, Inc. with specific deadlines for investors to petition the court to serve as lead plaintiff [1] DexCom, Inc. (NASDAQ:DXCM) - The class period for DexCom is from January 8, 2024, to September 17, 2025, with a lead plaintiff deadline of December 26, 2025 [6] - The complaint alleges that DexCom made materially false and misleading statements regarding its business and compliance policies, including unauthorized design changes to the G6 and G7 devices that compromised their reliability and posed health risks to users [6] - The lawsuit claims that these misstatements subjected DexCom to increased regulatory scrutiny and potential legal and financial harm [6] CarMax, Inc. (NYSE:KMX) - The class period for CarMax is from June 20, 2025, to September 24, 2025, with a lead plaintiff deadline of January 2, 2026 [6] - The lawsuit alleges that CarMax's defendants overstated growth prospects, attributing earlier growth to temporary factors related to customer behavior influenced by tariff speculation [6] - As a result, the statements made by CarMax's defendants regarding the company's business and operations were deemed materially false and misleading [6]

Core Viewpoint - The Gross Law Firm is notifying shareholders of CarMax, Inc. regarding a class action lawsuit due to allegations of misleading statements about the company's growth prospects during a specified period [1][3]. Group 1: Allegations and Class Period - The class period for the allegations is from June 20, 2025, to November 5, 2025 [3]. - The complaint claims that CarMax's growth was overstated, attributing earlier growth in the 2026 fiscal year to temporary factors related to customer behavior influenced by tariff speculation [3]. - It is alleged that the statements made by the defendants regarding CarMax's business and prospects were materially false and misleading, lacking a reasonable basis [3]. Group 2: Next Steps for Shareholders - Shareholders who purchased shares of KMX during the class period are encouraged to register for the class action, with a deadline of January 2, 2026, to seek lead plaintiff status [4]. - Once registered, shareholders will be enrolled in a portfolio monitoring system to receive updates on the case [4]. - Participation in the case incurs no cost or obligation for the shareholders [4]. Group 3: Law Firm's Mission - The Gross Law Firm aims to protect the rights of investors affected by deceit and illegal business practices, emphasizing the importance of responsible corporate behavior [5]. - The firm seeks recovery for investors who suffered losses due to misleading statements or omissions that led to inflated stock prices [5].

Core Points - CarMax, Inc. is facing a class action lawsuit for allegedly misleading investors about its growth prospects for fiscal year 2026 [1][3] - The class period for the lawsuit is from June 20, 2025, to September 24, 2025 [1] - Following the release of disappointing financial results for Q2 FY 2026, CarMax's stock price dropped significantly, falling $11.5 per share or 20.07% to close at $45.60 on September 25, 2025 [2] Allegations - Plaintiffs claim that CarMax's management overstated the company's growth potential, attributing earlier growth to temporary factors such as customer speculation regarding tariffs [3] - The stock continued to decline, falling an additional 1.62% to close at $44.86 the day after the disappointing results [2] Legal Actions - Shareholders interested in participating in the class action must submit their papers by January 2, 2026, to serve as lead plaintiff [4] - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4]

Core Insights - FPA Source Capital's net asset value increased by 4.59% in Q3 2025 and 13.76% over the trailing 12 months [1] - The top five equity performers contributed 4.82% to the fund's return, while the bottom five detractors reduced it by 2.03% [1] Company Performance - CarMax, Inc. (NYSE:KMX) experienced a one-month return of 16.75% but has lost 55.48% of its value over the last 52 weeks, closing at $38.82 per share with a market capitalization of $5.826 billion on December 05, 2025 [2] - CarMax's management has faced criticism for missteps, including withdrawing 2030 unit sales targets and overbuying inventory, leading to a 47% decline in share price year-to-date [3] - Despite management's execution issues, CarMax's shares are considered inexpensive, trading at approximately 12x forward consensus earnings and 1.1x tangible book value [3] - Two independent directors purchased shares in early October, indicating potential confidence in the company's future [3] - CarMax has increased its share repurchase program, although there is a preference for delaying repurchases until the market absorbs current disappointing news [3] - The company is viewed as having a differentiated used vehicle retail business, with potential for substantial share price improvement if operational execution improves [3]

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant stock drop attributed to potential violations of federal securities laws [1][3]. Group 1: Lawsuit Details - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [3]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [3]. Group 2: Financial Performance - CarMax reported disappointing financial results for Q2 of fiscal year 2026, including a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [6]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million in the previous year [6]. Group 3: Stock Price Impact - Following the announcement of disappointing financial results on September 25, 2025, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 to $45.60 [7]. - The unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 outlook, led to an additional stock price drop of over 24% [7]. Group 4: Company Operations - CarMax's claims of strong and sustainable demand for its cars were allegedly misleading, as the demand surge was primarily due to customers purchasing vehicles before the imposition of U.S. tariffs [4]. - The law firm BFA is also investigating whether CarMax properly assessed or reserved for its portfolio of car loans following the CEO's departure [5].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against CarMax, Inc. and reminds investors of the January 2, 2026 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit against the company [2][4]. Group 1: Allegations and Financial Impact - The complaint alleges that CarMax and its executives violated federal securities laws by making false and misleading statements regarding the company's growth prospects, which were overstated due to temporary benefits from customer behavior related to tariff speculation [4]. - Following the release of CarMax's second quarter fiscal 2026 financial results, which included an 11.2% decrease in CarMax Auto Finance income and a provision for loan losses of $142.2 million, the company's stock price fell by approximately 20%, closing at $45.60 per share on September 26, 2025 [5]. Group 2: Legal Proceedings and Participation - The lead plaintiff in the class action lawsuit is defined as the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [6]. - Faruqi & Faruqi encourages anyone with information regarding CarMax's conduct, including whistleblowers and former employees, to contact the firm [7].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant stock drop attributed to potential violations of federal securities laws [1][2]. Group 1: Lawsuit Details - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [2]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [2]. Group 2: Company Performance and Stock Impact - CarMax reported disappointing financial results for Q2 FY 2026, with a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [5]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million the previous year [5]. - Following the announcement of these results, CarMax's stock dropped $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [6]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 2025 outlook, led to an additional stock drop of over 24% [6]. Group 3: Market Context - CarMax's previous claims of strong demand were allegedly inflated due to a temporary boost from U.S. tariffs on cars, which prompted customers to purchase vehicles before the tariffs took effect [3]. - The lawsuit also investigates whether CarMax properly assessed or reserved for its portfolio of car loans following the CEO's departure [4].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. for securities fraud following a significant drop in stock price due to alleged violations of federal securities laws [1][3]. Group 1: Lawsuit Details - Investors have until January 2, 2026, to request to lead the case in the U.S. District Court for the District of Maryland [3]. - The lawsuit claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. Group 2: Company Performance - CarMax reported disappointing financial results for Q2 of fiscal year 2026, with a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [6]. - The net income for Q2 was approximately $95.4 million, down from $132.8 million in the previous year [6]. Group 3: Stock Price Impact - Following the financial results announcement on September 25, 2025, CarMax's stock price fell by $11.45 per share, or about 20%, from $57.05 to $45.60 [7]. - The unexpected departure of CEO Bill Nash on November 6, 2025, and a weak preliminary Q3 outlook led to an additional stock price drop of over 24% [7]. Group 4: Market Context - CarMax had previously promoted strong demand for its vehicles, which was allegedly inflated by a temporary surge in purchases before U.S. tariffs were imposed [4].

Core Viewpoint - Investors with significant losses in CarMax, Inc. have until January 2, 2026, to file lead plaintiff applications in a securities class action lawsuit due to alleged failure to disclose material information during the Class Period from June 20, 2025, to November 5, 2025 [1][3]. Summary by Sections Lawsuit Details - CarMax and certain executives are accused of violating federal securities laws by not disclosing important information during the Class Period [3]. - The lawsuit is identified as Cap v. CarMax, Inc., No. 25-cv-03602 [4]. Financial Performance - On September 25, 2025, CarMax reported a 5.4% decrease in retail unit sales, a 6.3% decrease in comparable store unit sales, and a 2.2% decrease in wholesale units [3]. - The net earnings per diluted share were reported at $0.64, down from $0.85 a year ago [3]. Market Reaction - Following the financial results announcement, CarMax's share price dropped by $11.5, or 20.07%, closing at $45.60 per share on September 25, 2025 [4].