KMX SECURITIES LAWSUIT: CarMax, Inc. Investors are Notified to Contact BFA Law before the Imminent January 2 Class Action 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 attributed to potential 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 pending in the U.S. District Court for the District of Maryland [3]. Group 2: Company Performance and Stock Impact - CarMax reported disappointing financial results for Q2 of fiscal year 2026, 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 [6]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million the previous year, attributed to a "pull forward" in demand due to U.S. tariffs [6]. - Following the financial report, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 to $45.60 on September 25, 2025 [7]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 outlook, led to an additional stock drop of over 24% [7]. Group 3: Company Background - CarMax operates in the used car sales industry and had previously promoted strong demand for its vehicles, which was later questioned due to the impact of tariffs [4]. - The law firm Bleichmar Fonti & Auld LLP, representing the plaintiffs, has a history of successful recoveries in securities class actions, including over $900 million from Tesla's Board of Directors [9].