CARMAX CLASS ACTION LAWSUIT: CarMax, Inc. (NYSE:KMX) Investors with Losses are Notified of the Upcoming January 2 Court Deadline

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant stock drop 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 regarding the demand for its cars, which was allegedly boosted by U.S. tariffs, leading to a temporary increase in sales [3]. - The firm is also investigating whether CarMax adequately assessed or reserved for its portfolio of car loans [4]. Group 3: Financial Performance and Stock Impact - On September 25, 2025, CarMax reported disappointing financial results for Q2 FY2026, 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 net income for the second quarter was approximately $95.4 million, down from $132.8 million the previous year, attributed to a "pull forward" in demand due to tariff announcements [5]. - 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 [6].