Core Insights - CarMax, Inc. is facing challenges with declining sales volume, increased marketing expenses, and heightened competition in the used vehicle retail market [1][8] Sales Performance - The company anticipates a decline in sales performance for the fiscal fourth quarter, which is expected to negatively impact service margins due to lower sales volumes [2][8] - CarMax's average selling prices have increased, making them less attractive to customers, prompting the company to reduce margins and increase marketing spending to remain competitive [3][8] Financial Health - As of November 30, 2025, CarMax reported cash and cash equivalents of $204.9 million and long-term debt of $1.17 billion, resulting in a long-term debt-to-capital ratio of 0.73, significantly higher than the auto sector average of 0.18 [4] - The company's times interest earned ratio stands at 6.8, which is lower than the auto sector's average of 25.24, indicating financial strain [4] Competitive Landscape - The automotive retail market is highly competitive, with CarMax facing pressure from traditional dealers, online platforms, and private sellers, all offering similar vehicles at comparable prices [5] - The rise of online car buying and well-funded e-commerce entrants poses a threat to CarMax's margins and overall business model, necessitating effective responses to maintain sales and operations [5]

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by certain officers and directors of CarMax, Inc. related to misrepresentation of the company's growth prospects [1][2]. Group 1: Investigation Details - The investigation is focused on whether CarMax insiders misrepresented or failed to disclose critical information regarding the company's growth, which was influenced by temporary factors such as customer speculation about tariffs [2]. - Allegations suggest that statements made about CarMax's business operations and future prospects were materially false and misleading, lacking a reasonable basis during relevant times [2]. Group 2: Shareholder Participation - Shareholders who purchased KMX shares prior to June 20, 2025, are encouraged to contact Kuehn Law for potential legal action, as there may be limited time to enforce their rights [3]. - The firm covers all case costs and does not charge its investor clients, emphasizing the importance of shareholder involvement in maintaining market integrity [4].

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]. Company Overview - CarMax, Inc. is a retailer specializing in used cars, which has recently faced legal challenges due to allegations of misleading investors regarding demand for its vehicles [4]. Financial Performance - In the second quarter of fiscal year 2026, CarMax reported disappointing financial results, 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 the second quarter was approximately $95.4 million, down from $132.8 million in the previous year [6]. Stock Performance - 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]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary outlook for Q3 2025, led to an additional stock price drop of over 24% [7]. Legal Proceedings - Investors have until January 2, 2026, to request to be appointed to lead the class action case, which is currently 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 investors in CarMax securities [3].

Core Viewpoint - Investors have until January 2, 2026, to file lead plaintiff applications in securities class action lawsuits against CarMax, Inc. for securities purchased between June 20, 2025, and November 5, 2025 [1] Group 1 - The lawsuits are being led by Kahn Swick & Foti, LLC and former Louisiana Attorney General Charles C. Foti, Jr. [1] - The class action pertains to investors who acquired CarMax's securities during the specified class period [1]

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]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the District of Maryland, titled Jason Cap v. CarMax, Inc., et al., No. 1:25-cv-03602, with investors having until January 2, 2026, to seek lead plaintiff status [3]. - The complaint alleges violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [3]. Group 2: Company Performance and Stock Impact - 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 the previous year, attributed to a "pull forward" in demand due to U.S. tariffs [6]. - Following the financial report, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [7]. - 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% [7]. Group 3: Company Background - CarMax operates in the used car sales industry, promoting a strong demand for its vehicles based on customer experience [4]. - The firm Bleichmar Fonti & Auld LLP, known for representing plaintiffs in securities class actions, is leading the lawsuit against CarMax [9].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. for allegedly making false and misleading statements regarding its growth prospects during the Class Period from June 20, 2025, to September 24, 2025, leading to investor losses [5]. Allegation Details - The lawsuit claims that CarMax's management overstated the company's growth potential, attributing earlier growth in fiscal year 2026 to temporary factors related to customer behavior influenced by tariff speculation [5]. - It is alleged that the statements made by the defendants about CarMax's business operations and future prospects were materially false and misleading [5]. Financial Performance - On April 10, 2025, CarMax reported its fourth quarter and fiscal year 2025 results, which missed consensus estimates, leading to a stock price drop of $13.61, or 17%, closing at $66.45 per share [5]. - On September 25, 2025, CarMax disclosed significant declines in revenue and profit, including a 6.0% revenue decline, a 7.2% decline in total retail used vehicle revenues, and a 5.6% decline in total gross profit, resulting in a further stock price drop of $11.45, or 20.1%, closing at $45.60 per share [5].

NEW YORK, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in CarMax, Inc. ("CarMax, Inc." or the "Company") (NYSE: KMX) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of CarMax, Inc. investors who were adversely affected by alleged securities fraud between June 20, 2025 and November 5, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/carmax-inc-lawsuit-submis ...

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 - The lawsuit is pending in the U.S. District Court for the District of Maryland, titled Jason Cap v. CarMax, Inc., et al., No. 1:25-cv-03602, and claims are made under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. - Investors have until January 2, 2026, to request to be appointed to lead the case [3]. Group 2: Company Performance and Stock Impact - 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, attributed to a "pull forward" in demand due to U.S. tariffs [6]. - Following the financial report, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [7]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 outlook, led to an additional stock drop of over 24% [7]. Group 3: Company Background - CarMax is known for selling used cars and had previously promoted strong demand driven by a seamless customer experience [4]. - The firm Bleichmar Fonti & Auld LLP, which is representing the plaintiffs, has a history of successful recoveries in securities class actions, including over $900 million from Tesla, Inc.'s Board of Directors [9].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against CarMax, Inc. related to alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status in a class action lawsuit set for January 2, 2026 [2][4]. Group 1: Allegations and Financial Impact - The complaint alleges that CarMax and its executives made false and misleading statements regarding the company's growth prospects, which were overstated due to temporary benefits from customer behavior influenced by tariff speculation [4]. - CarMax reported a significant decrease in income from CarMax Auto Finance, with an 11.2% decline attributed to a $142.2 million provision for loan losses in the second quarter of fiscal 2026, compared to $112.6 million in the same period the previous year [5]. - Following the release of these financial results, CarMax's stock price fell by $11.45 per share, approximately 20%, closing at $45.60 on September 26, 2025 [5]. Group 2: Legal Proceedings and Investor Actions - Investors who purchased CarMax securities between June 20, 2025, and September 24, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights and options [1]. - The role of lead plaintiff in the class action lawsuit is designated for the investor with the largest financial interest who is also typical of the class members, with the option for any member to move the court to serve as lead plaintiff [6]. - Faruqi & Faruqi is also seeking information from whistleblowers, former employees, and shareholders regarding CarMax's conduct [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]. Company Overview - CarMax, Inc. is a company that sells used cars and has recently faced legal challenges due to allegations of misleading investors regarding demand for its vehicles [4]. 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 posted a net income of approximately $95.4 million for Q2, down from $132.8 million in the previous year [6]. Stock Performance - 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]. - An 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]. Legal Proceedings - Investors have until January 2, 2026, to request to be appointed to lead the class action 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 investors in CarMax securities [3].