3-WEEK DEADLINE ALERT: CarMax (KMX) Securities Fraud Lawsuit Filed Over Alleged Concealed Demand Pull-Forward and Auto Finance Portfolio Risk

Core Viewpoint - The article discusses a securities class action lawsuit against CarMax, Inc. alleging that the company misled investors about its business stability and growth prospects, resulting in significant stock declines [2][4]. Summary by Sections Lawsuit Details - The lawsuit claims that CarMax and its executives concealed critical information regarding the company's operational challenges, leading to two major stock crashes [2][5]. - The class period for the lawsuit is defined as June 20, 2025, to November 5, 2025 [3]. Allegations - The complaint identifies two main undisclosed issues: 1. CarMax misrepresented its Q1 2026 growth as sustainable, failing to disclose it was driven by a temporary surge in customer demand due to anticipated tariffs [4]. 2. Management assured investors about the stability of their loan portfolio, which later revealed a significant risk, resulting in a $142 million loan loss provision, a 40% increase sequentially [4]. Stock Performance - Following the disclosure of poor Q2 results on September 25, 2025, which included a 24% drop in net EPS, the stock fell by 20% [4]. - The unexpected termination of the CEO on November 6, 2025, amid weak Q3 guidance led to another severe decline in stock value [4]. Investor Actions - Investors who suffered losses are encouraged to contact Hagens Berman to discuss their rights and potential involvement in the lawsuit, with a lead plaintiff deadline set for January 2, 2026 [5][6].