CarMax(US:KMX) Globenewswire·2025-11-04 22:02Core Viewpoint - A securities fraud class action has been filed against CarMax, Inc. for allegedly misleading investors regarding its business model and financial performance during a specific period in 2025 [1][3]. Group 1: Lawsuit Details - The class action seeks to represent investors who acquired CarMax securities between June 20, 2025, and September 24, 2025 [1]. - The lawsuit was prompted by a significant stock sell-off on September 25, 2025, when CarMax's stock dropped nearly 20% following disappointing Q2 2026 financial results [2][7]. - The lead plaintiff deadline for the lawsuit is set for January 2, 2026 [4]. Group 2: Financial Performance - CarMax reported a 24% year-over-year decline in net EPS for Q2 2026, alongside a 5.4% drop in retail used unit sales and a 6.3% decrease in comparable store used unit sales [6]. - The CarMax Auto Finance (CAF) segment experienced an 11.02% revenue decline year-over-year, attributed to a $142 million loan loss provision, which was a nearly 40% sequential increase and approximately 24% year-over-year jump [7]. Group 3: Allegations of Misleading Information - The complaint alleges that CarMax misled investors by claiming strong growth prospects and failing to disclose that positive Q1 2026 results were due to consumers accelerating car purchases to avoid tariffs [5]. - Hagens Berman is investigating whether CarMax intentionally misled investors about the strength of its business model and the quality of its loan portfolio [3][8].