Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against CarMax, Inc. due to allegations of misleading statements regarding the company's growth prospects and financial performance, particularly in light of recent financial disclosures and stock price decline [1][3][4]. Group 1: Allegations and Legal Actions - The complaint alleges that CarMax and its executives violated federal securities laws by making false and misleading statements about the company's growth prospects, which were overstated and based on temporary market conditions [3]. - Investors are reminded of the January 2, 2026 deadline to seek the role of lead plaintiff in a federal securities class action against CarMax [1][5]. - The firm encourages anyone with information regarding CarMax's conduct, including whistleblowers and former employees, to come forward [6]. Group 2: Financial Performance - CarMax reported a decrease in income from CarMax Auto Finance by 11.2%, 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 [4]. - The provision for loan losses included a $71.3 million increase in the estimate of lifetime losses on existing loans, primarily due to worsening performance among the 2022 and 2023 vintages [4]. - Following the financial results announcement, CarMax's stock price fell by $11.45 per share, approximately 20%, closing at $45.60 per share on September 26, 2025 [4].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant drop in stock price due to potential violations of federal securities laws [1][2]. Group 1: Lawsuit Details - Investors have until January 2, 2025, 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: Reasons for the Lawsuit - CarMax has been accused of misleading investors about the demand for its used cars, which was allegedly inflated by short-term factors such as U.S. tariffs [3]. - The company reported disappointing financial results for Q2 FY 2026, including a 5.4% decline in retail used unit sales and a net income drop from $132.8 million to $95.4 million year-over-year [5]. Group 3: Stock Performance - Following the announcement of poor financial results on September 25, 2025, CarMax's stock price fell by $11.45, or approximately 20%, from $57.05 to $45.60 per share [6]. - The 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].

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 November 5, 2025, due to alleged misleading statements regarding the company's growth prospects [2][6]. Group 1: Lawsuit Details - The class action lawsuit claims that CarMax's defendants made materially false and misleading statements about the company's growth, overstating its prospects based on temporary benefits from customer behavior influenced by tariff speculation [6]. - 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]. Group 2: Next Steps for Investors - Investors interested in joining the CarMax class action can do so by visiting the provided link or contacting the law firm directly, with a deadline to serve as lead plaintiff by January 2, 2026 [4][7]. - It is noted that no class has been certified yet, and investors are encouraged to select qualified counsel with a proven track record in securities class actions [5][8]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong reputation in securities class actions, having achieved significant settlements, including the largest securities class action settlement against a Chinese company [5]. - The firm has consistently ranked highly in terms of the number of securities class action settlements and has recovered hundreds of millions of dollars for investors over the years [5].

Core Viewpoint - The CarMax class action lawsuit alleges that the company and its executives misrepresented growth prospects during a specific period, leading to significant investor losses when actual performance was revealed to be declining [3][4]. Group 1: Lawsuit Details - The class action lawsuit is titled Cap v. CarMax, Inc., and it involves purchasers of CarMax securities from June 20, 2025, to September 24, 2025, with a deadline of January 2, 2026, for lead plaintiff applications [1]. - Allegations include that CarMax overstated its growth due to temporary factors related to customer behavior influenced by tariff speculation [3]. - Following the release of second-quarter fiscal year 2026 results on September 25, 2025, which showed a 5.4% decrease in retail unit sales and a 6.3% decrease in comparable store unit sales, CarMax's share price fell approximately 20% [4]. Group 2: Legal Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased CarMax securities during the class period to seek lead plaintiff status, representing the interests of the class [5]. - The lead plaintiff can choose a law firm to litigate the case, and participation as lead plaintiff does not affect the ability to share in any potential recovery [5]. Group 3: Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [6]. - The firm has a strong track record, being ranked 1 in monetary relief for investors in securities class actions for four out of the last five years [6].

Core Viewpoint - CarMax, Inc. is facing a class action lawsuit for securities fraud following a significant drop in stock price attributed to alleged violations of federal securities laws [1][3]. Group 1: Lawsuit Details - The class action lawsuit has been filed against CarMax and certain senior executives, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. - Investors have until January 2, 2025, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [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 poor financial results on September 25, 2025, CarMax's stock price fell by $11.45 per share, or roughly 20%, from $57.05 to $45.60 [7]. - An additional drop of over 15% occurred after the unexpected departure of CEO Bill Nash and a weak preliminary Q3 2025 outlook on November 6, 2025 [7]. Group 4: Market Context - The lawsuit alleges that CarMax misrepresented the demand for its cars, which was temporarily boosted by U.S. tariffs, leading to a "pull forward" in demand prior to the tariffs taking effect [4][6]. - The unexpected departure of CEO Bill Nash is also under investigation to determine if CarMax properly assessed its portfolio of car loans [5].

Core Viewpoint - An amended securities class action lawsuit has been filed against CarMax, Inc., expanding the class period to include purchases made between June 20, 2025, and November 5, 2025, with a lead plaintiff deadline set for January 2, 2026 [1]. Group 1: Allegations Against CarMax - The complaint alleges that CarMax's defendants made false and misleading statements regarding the company's growth prospects, claiming that the earlier growth in the 2026 fiscal year was merely a temporary benefit due to customer speculation about tariffs [2]. - It is asserted that the positive statements made by the defendants about CarMax's business and operations were materially misleading and lacked a reasonable basis throughout the class period [2]. Group 2: Lead Plaintiff Process - Investors in CarMax have until January 2, 2026, to seek appointment as a lead plaintiff representative of the class, or they may choose to remain absent class members [3]. - The lead plaintiff is typically the investor or small group of investors with the largest financial interest and who are representative of the proposed class [3]. Group 3: Law Firm Background - Kessler Topaz Meltzer & Check, LLP is known for prosecuting class actions and has a reputation for recovering billions for victims of fraud and corporate misconduct [4].

Core Points - The article highlights the deadline of January 2, 2026, for investors to file a lead plaintiff motion in a class action lawsuit concerning CarMax, Inc. [1] - The class action is on behalf of investors who purchased or acquired CarMax securities during the period from June 20, 2025, to September 24, 2025 [1] Company Summary - CarMax, Inc. is the subject of a class action lawsuit, indicating potential legal challenges that may affect investor sentiment and stock performance [1] - The lawsuit involves investors who may have suffered losses during the specified class period, suggesting possible financial implications for the company [1]

Accessibility StatementSkip Navigation NEW YORK, Nov. 7, 2025 /PRNewswire/ -- Levi &Â 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 September 24, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk. ...

Core Points - CarMax, Inc. experienced a significant drop in share price, falling as much as $9.48 (-23%) following the announcement of CEO Bill Nash's termination effective December 1, 2025 [1] - The company reported disappointing preliminary financial results for Q3 2026, forecasting a comparable store unit decrease of 8% - 12% and net EPS between $0.18 - $0.36, which is below analysts' expectations of $0.69 [2] - A securities class action has been filed against CarMax, with the firm Hagens Berman investigating claims related to the company's disclosures about its business model and growth prospects [3][4] Financial Performance - CarMax's Q2 2026 results showed a year-over-year net EPS decline of 24%, 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 scrutiny, reporting an 11.02% revenue decline year-over-year due to a $142 million loan loss provision, which is a nearly 40% sequential increase and approximately 24% year-over-year jump [6] Legal and Regulatory Issues - The class action lawsuit focuses on allegations that CarMax misled investors regarding its growth prospects and the quality of its CAF portfolio [4][7] - Hagens Berman is urging investors who suffered losses to come forward, with a lead plaintiff deadline set for January 2, 2026 [3]

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