Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and its 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, attributed to a "pull forward" in demand due to U.S. tariffs [5]. - Following the financial report, 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: Company Background - CarMax is a leading retailer of used cars, emphasizing a seamless customer experience and strong demand for its vehicles [3]. - The firm Bleichmar Fonti & Auld LLP, known for representing plaintiffs in securities class actions, is handling the lawsuit against CarMax [10].

Core Points - Rosen Law Firm is encouraging investors of CarMax, Inc. to secure counsel before the January 2, 2026 lead plaintiff deadline in a securities class action lawsuit [2][4] - Investors who purchased CarMax securities between June 20, 2025, and November 5, 2025, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [3] - The lawsuit alleges that CarMax's defendants made materially false and misleading statements regarding the company's growth prospects, which were overstated due to temporary market conditions [6] Company Information - CarMax, Inc. is facing a securities class action lawsuit due to claims of misleading statements about its business operations and growth prospects during the specified class period [6] - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field [5] Legal Process - To participate in the class action, investors can submit their information through the Rosen Law Firm's website or contact them directly [4][7] - A class has not yet been certified, meaning investors are not represented unless they retain counsel [8]

Core Viewpoint - CarMax, Inc. has faced significant challenges, including the termination of its CEO and a bleak outlook for Q3 2026, leading to a substantial drop in share price and investor losses [1][7]. Financial Performance - CarMax reported a 24% decline in net EPS year-over-year for Q2 2026, with retail used unit sales down 5.4% and comparable store used unit sales down 6.3% [5]. - The company's CarMax Auto Finance (CAF) revenue decreased by 11.02% year-over-year, attributed to a $142 million loan loss provision, marking a nearly 40% sequential increase and a 24% year-over-year rise [6]. Management Changes - The company announced the firing of CEO Bill Nash on November 6, 2025, which coincided with a forecasted decline in comparable store used unit sales of 8% to 12% for Q3 2026 [1][7]. Legal Issues - A securities class action lawsuit is underway, focusing on allegations that CarMax misled investors regarding its business model and growth prospects, particularly in light of its previous assurances of sustained earnings growth [3][4]. - The class period for the lawsuit spans from June 20, 2025, to November 5, 2025, with a lead plaintiff deadline set for January 2, 2026 [2][3].

NEW YORK, Nov. 28, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of CarMax, Inc. (NYSE: KMX) between June 20, 2025 and November 5, 2025, both dates inclusive (the “Class Period”) of the important January 2, 2026 lead plaintiff deadline in the securities class action first filed by the Firm. SO WHAT: If you purchased CarMax securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or co ...

KMX CLASS REMINDER: CarMax, Inc. Investors with Losses are Reminded to Contact BFA Law before the Imminent January 2 Securities Class Action DeadlineNovember 28, 2025 8:18 AM EST | Source: Bleichmar Fonti & AuldNew York, New York--(Newsfile Corp. - November 28, 2025) - Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against CarMax, Inc. (NYSE: KMX) and certain of the Company's senior executives for securities fraud after a significant ...

Core Insights - Ariel Investments' "Ariel Mid Cap Value Strategy" reported a strong performance in Q3 2025, with a return of +9.62% gross of fees, outperforming both the Russell Midcap Value Index (+6.18%) and the Russell Midcap Index (+5.33%) [1] - CarMax, Inc. (NYSE:KMX) was highlighted as a significant detractor in performance due to disappointing earnings, lower unit sales, and increased loan loss provisions [3] Company Performance - CarMax, Inc. experienced a one-month return of -8.77% and a 52-week decline of 54.84%, closing at $38.20 per share with a market capitalization of $5.733 billion as of November 27, 2025 [2] - The company reported total sales of $6.6 billion in the fiscal second quarter of 2026, reflecting a 6% decline from the previous year due to lower volume [4] Management Commentary - Management indicated that the decline in performance was due to normalized demand after customers previously bought in advance of potential tariffs, and the rise in loan loss provisions was primarily linked to pandemic-era loans [3] - The credit deterioration is viewed as largely contained, with newer loans performing in line with expectations, suggesting that the current weakness is cyclical rather than structural [3] Market Position - CarMax is recognized as the market share leader in used vehicles, with its scale and omnichannel capabilities positioning it well for long-term growth once market conditions stabilize [3]

Core Points - Rosen Law Firm is reminding investors of CarMax, Inc. (NYSE: KMX) about the January 2, 2026 lead plaintiff deadline for a securities class action related to purchases made between June 20, 2025, and November 5, 2025 [2][4] Group 1: Class Action Details - Investors who purchased CarMax securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [3] - The lawsuit alleges that defendants made materially false and misleading statements regarding CarMax's growth prospects, which were overstated due to temporary benefits from customer behavior influenced by tariff speculation [6] Group 2: Legal Representation - Investors are encouraged to select qualified legal counsel with a proven track record in securities class actions, as many firms may not have the necessary experience or resources [5] - The Rosen Law Firm has a history of successful settlements, including the largest securities class action settlement against a Chinese company, and has recovered hundreds of millions for investors [5]

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, attributed to a "pull forward" in demand due to U.S. tariffs [5]. - Following the financial report, 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: Company Background - CarMax is a leading retailer of used cars, emphasizing a seamless customer experience and strong demand for its vehicles [3]. - The firm Bleichmar Fonti & Auld LLP, known for representing plaintiffs in securities class actions, is handling the lawsuit against CarMax [10].

Core Viewpoint - Rosen Law Firm is encouraging investors of CarMax, Inc. to secure legal counsel before the January 2, 2026 deadline for a securities class action lawsuit related to misleading statements made by the company during the class period from June 20, 2025, to November 5, 2025 [1][5]. Group 1: Class Action Details - Investors who purchased CarMax securities during the specified class period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and those wishing to serve as lead plaintiff must act by January 2, 2026 [3]. - The lawsuit alleges that CarMax made materially false and misleading statements regarding its growth prospects, which were based on temporary benefits rather than sustainable growth [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest securities class action settlement against a Chinese company [4]. - The firm has been consistently ranked among the top firms for securities class action settlements, recovering hundreds of millions of dollars for investors [4]. - In 2019, the firm secured over $438 million for investors, showcasing its effectiveness in litigation [4].

Core Viewpoint - CarMax, Inc. experienced a significant decline in share price following the announcement of CEO Bill Nash's termination and a negative Q3 2026 sales outlook, indicating deeper issues within the company [1][7]. Financial Performance - CarMax reported a 24% year-over-year decline in net EPS for Q2 2026, with retail used unit sales down 5.4% and comparable store used unit sales down 6.3% [5]. - The CarMax Auto Finance (CAF) loan portfolio faced challenges, with revenue declining by 11.02% year-over-year due to a $142 million loan loss provision, marking a nearly 40% sequential increase and a 24% year-over-year jump [6]. Management and Corporate Governance - The termination of CEO Bill Nash on November 6, 2025, raised concerns about the company's leadership and strategic direction [1][7]. - Prior to the CEO's termination, CarMax had assured investors of strong growth prospects, claiming a fragmented market would support continued sales and earnings growth [4]. Legal and Regulatory Issues - Hagens Berman, a national shareholders rights firm, is investigating potential legal claims against CarMax related to misleading disclosures about its business model and growth prospects [2][3]. - The class action litigation focuses on whether CarMax intentionally misled investors regarding its financial health and the quality of its CAF portfolio [7].