KMX INVESTOR REMINDER: Faruqi & Faruqi, LLP Announces that CarMax Investors Have Opportunity to Lead Class Action Lawsuit

Core Viewpoint - CarMax is facing a class action lawsuit due to allegations of misleading statements regarding its growth prospects and financial performance, particularly related to its loan loss provisions and stock price decline [5][6][7]. Group 1: Legal Proceedings - Faruqi & Faruqi, LLP is investigating potential claims against CarMax and reminds investors of the January 2, 2026 deadline to seek the role of lead plaintiff in the federal securities class action [2]. - The lawsuit claims that CarMax and its executives violated federal securities laws by making false statements about the company's growth and failing to disclose critical information [5]. - Investors who suffered losses between June 20, 2025, and September 24, 2025, are encouraged to contact the law firm to discuss their legal rights [1]. Group 2: Financial Performance - CarMax reported a significant decrease in income from CarMax Auto Finance, with an 11.2% decline 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 [6]. - The provision for loan losses included a $71.3 million increase in estimated lifetime losses on existing loans, primarily due to worsening performance among the 2022 and 2023 vintages [7]. - Following the financial results announcement, CarMax's stock price fell by $11.45 per share, approximately 20%, closing at $45.60 on September 26, 2025 [7].