CARMAX INVESTORS: CarMax, Inc. (KMX) has been Sued for Securities Fraud, Investors are Urged to Contact BFA Law

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 leading retailer of used cars, which has recently faced scrutiny due to disappointing financial results and allegations of misleading investors regarding demand for its vehicles [4][6]. Financial Performance - For the second quarter of fiscal year 2026, CarMax reported 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. The net income for the quarter was approximately $95.4 million, down from $132.8 million in the previous year [6]. - The stock price of CarMax fell by $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025, following the announcement of these disappointing results [7]. Legal Issues - The lawsuit claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, with investors encouraged to seek lead plaintiff status by January 2, 2026 [3]. - The unexpected departure of CEO Bill Nash on November 6, 2025, and a weak preliminary outlook for Q3 2025 further contributed to the decline in stock price, which dropped over 24% following this news [7].