Core Viewpoint - CarMax, Inc. is facing a securities fraud lawsuit following a significant drop in its stock price after the announcement of CEO Bill Nash's resignation and allegations of overstating growth prospects [2][1]. Group 1: Company Developments - CarMax shares fell over 10% in pre-market trading on November 6, 2025, after the announcement that CEO Bill Nash will step down effective December 1, 2025, with board member David McCreight serving as interim CEO [2]. - The lawsuit alleges that CarMax overstated its long-term growth prospects between June 20, 2025, and September 24, 2025, claiming "significant year-over-year earnings growth for years to come" based on temporary sales strength driven by tariff speculation [2]. Group 2: Investor Information - Investors who purchased CarMax common stock between June 20, 2025, and September 24, 2025, and have experienced a decline in their shares may be eligible to recover losses [3]. - The deadline to seek appointment as lead plaintiff in the lawsuit is January 2, 2026, and a class has not yet been certified [4]. Group 3: Whistleblower Information - Individuals with non-public information about CarMax are encouraged to assist in the investigation or file a report with the SEC under the whistleblower program, potentially receiving rewards of up to 30% of any successful recovery [5]. Group 4: Legal Representation - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [6].

Qualcomm - Qualcomm reported an EPS of $3, exceeding the estimate of $2.87, representing a 14% increase year-over-year from $2.69 [2] - Revenue reached $11.27 billion, up 10% year-over-year, beating estimates by approximately $510 million [2][3] - Licensing revenue, primarily from Apple, declined by 7.4%, while QCT revenue increased by 18%, indicating ongoing diversification efforts [3] CarMax - CarMax's stock fell 13% following a lower EPS guidance, with the new adjusted range between 18 and 36 cents, down from 64 cents last quarter [5][6] - Comparable sales are expected to decline by 8 to 12%, alongside additional restructuring costs and layoffs [7] - The wholesale used vehicle market prices are decreasing, with total sales down 2% from August to September [9] Fortinet - Fortinet reported an EPS of 74 cents, surpassing the estimate of 63 cents, marking a 17% increase [10] - Topline sales reached $1.72 billion, a 14% increase, beating estimates by about $20 million [10] - The revenue guidance for the next quarter was widened to a range of $1.83 billion to $1.89 billion, which has put pressure on the shares [11]

Core Points - A shareholder has filed a securities class action lawsuit against CarMax, Inc. for misrepresentations regarding the company's growth prospects during the period from June 20, 2025, to September 24, 2025 [1][2] Group 1 - The lawsuit is on behalf of investors who purchased or acquired CarMax securities within the specified timeframe [1] - Investors interested in joining the class action or discussing their legal rights can contact the Investor Relations Manager [2] - The deadline to file papers to serve as lead plaintiff is January 2, 2026, and participation does not require serving as lead plaintiff [3] Group 2 - Bernstein Liebhard LLP has a history of recovering over $3.5 billion for clients and has represented large public and private pension funds [4]

Core Insights - CarMax has terminated its CEO Bill Nash, who held the position since 2016, indicating a significant leadership change within the company [1] - David McCreight, a board member, has been appointed as the interim president, suggesting a temporary leadership solution while the company seeks a permanent replacement [1] Company Summary - The leadership transition comes as CarMax navigates its operational strategies and market challenges, reflecting potential shifts in company direction [1] - The decision to replace the CEO may impact investor confidence and market perception of CarMax's future performance [1]

Group 1 - The FPA Crescent Fund reported a gain of 5.54% in Q3 2025 and 15.32% over the trailing twelve months, with top five performers contributing 6.65% to the return and bottom five detracting 2.58% [1] - CarMax, Inc. (NYSE:KMX) has experienced a one-month return of -7.48% and a 52-week loss of 46.61%, with a market capitalization of $5.993 billion as of November 5, 2025 [2] - The management of CarMax 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] Group 2 - Despite the disappointing management execution, CarMax 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 the current negative news [3]

Core Points - CarMax Inc. shares dropped over 10% in premarket trading following the unexpected resignation of CEO Bill Nash [1] - David McCreight has been appointed as interim CEO, while Tom Folliard takes on the role of interim executive chair [2] - The board aims to enhance sales, profitability, and reduce costs during this transitional period, acknowledging that recent results do not reflect the company's potential [3] Company Performance - CarMax has faced significant challenges this year, with its stock price declining approximately 50% in 2025, contrasting with other car retailers that have seen stock increases [4]

Leadership Changes - CarMax has announced leadership changes to strengthen its business, appointing David McCreight as Interim President and CEO, while Tom Folliard becomes Interim Executive Chair of the Board [1][5] - Bill Nash, the current CEO, is stepping down from his position and the Board [1] Search for Permanent CEO - The search for a permanent CEO is underway, supported by Russell Reynolds Associates and overseen by the Compensation and Personnel Committee [2] Financial Outlook - CarMax provided a preliminary financial outlook for the third fiscal quarter ending November 30, 2025, indicating a decrease in comparable store used unit sales by 8%-12% [6] - Net earnings per diluted share are expected to be between $0.18 and $0.36, which includes $0.09 of non-recurring expenses related to the leadership change and workforce reductions [6] - The company anticipates an increase in marketing spend year-over-year to support a new brand positioning launch [7] Company Background - CarMax is the largest retailer of used autos in the U.S., having sold approximately 790,000 used vehicles and 540,000 wholesale vehicles during the fiscal year ending February 28, 2025 [13] - The company originated over $8 billion in auto loans during fiscal 2025, contributing to a nearly $18 billion portfolio [13]

Core Points - ClaimsFiler reminds investors of the deadline to file lead plaintiff applications in a class action lawsuit against CarMax, Inc. for securities purchased between June 20, 2025, and September 24, 2025 [1] - The lawsuit alleges that CarMax and certain executives failed to disclose material information, violating federal securities laws [3] Financial Performance - 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 for the second quarter of fiscal year 2026 [3] - Net earnings per diluted share were $0.64, down from $0.85 a year ago [3] Market Reaction - Following the announcement of the financial results, CarMax's share price fell by $11.5, or 20.07%, closing at $45.60 per share on September 25, 2025 [4] Legal Information - The case is titled Cap v. CarMax, Inc., No. 25-cv-03602, and is pending in the United States District Court for the District of Maryland [4]

Core Viewpoint - CarMax, Inc. is facing a class action lawsuit due to alleged misrepresentation of its financial health and demand for used cars during the period from March 5, 2024, to October 8, 2025 [1][3] Financial Performance - CarMax reported disappointing financial results for Q2 of fiscal year 2026, with a net income of approximately $95.4 million, down from $132.8 million in the previous year [3] - The company experienced 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 [3] - The decline in sales was attributed to a "pull forward" in demand due to the announcement of U.S. tariffs on cars, which led to customers purchasing vehicles before the tariffs took effect [3] Stock Market Reaction - Following the announcement of disappointing financial results, CarMax's stock price fell by $11.45 per share, approximately 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [3] Legal Context - Investors who purchased CarMax securities during the class period have until January 2, 2025, to file a lead plaintiff motion [1] - The Portnoy Law Firm is representing investors in this class action and is offering complimentary case evaluations [2][4]

Core Viewpoint - Rosen Law Firm has filed a class action lawsuit on behalf of CarMax, Inc. investors for securities purchased between June 20, 2025, and September 24, 2025, due to alleged misleading statements regarding the company's growth prospects [1][5]. Group 1: Lawsuit Details - The lawsuit claims that CarMax's defendants overstated the company's growth prospects, attributing earlier growth in the 2026 fiscal year to temporary factors related to customer behavior influenced by tariff speculation [5]. - Investors are encouraged to join the class action, with the deadline to serve as lead plaintiff set for January 2, 2026 [1][3]. Group 2: Legal Representation - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in recovering significant amounts for investors [4]. - The firm has been recognized for its leadership in securities class action settlements, achieving notable recoveries, including over $438 million in 2019 [4].