KMX INVESTORS: BFA Law Reminds CarMax, Inc. Investors with Losses to Contact the Firm before the Imminent January 2 Securities Class Action Deadline

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. for securities fraud following a significant drop in stock price due to alleged violations of federal securities laws [1][3]. Group 1: Lawsuit Details - The lawsuit is based on claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, representing investors in CarMax securities [3]. - Investors have until January 2, 2026, to request to lead the case, which is currently 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, with 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 net income for the second quarter 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 about 20%, from $57.05 to $45.60 [7]. - The unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 2025 outlook, led to an additional drop of over 24% in the stock price [7]. Group 4: Company Operations - CarMax's management had previously emphasized strong demand for its vehicles, which was allegedly inflated by a temporary surge in purchases before U.S. tariffs were imposed [4]. - The law firm BFA is also investigating whether CarMax adequately assessed or reserved for its portfolio of car loans following the CEO's departure [5].