KMX STOCK DROP ALERT: CarMax, Inc. Investors May Have Been Affected by Fraud and Are Notified to Contact BFA Law Prior to January 2 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 pending in the U.S. District Court for the District of Maryland, titled Jason Cap v. CarMax, Inc., et al., No. 1:25-cv-03602, with investors having until January 2, 2026, to seek lead plaintiff status [3]. - The complaint alleges violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [3]. Group 2: Reasons for the Lawsuit - CarMax has been accused of misleading investors regarding the demand for its used cars, claiming it was strong and sustainable, while the reality was a temporary boost in demand due to U.S. tariffs on cars [4]. - The unexpected departure of CEO Bill Nash on November 6, 2025, is also under investigation to determine if CarMax adequately assessed its portfolio of car loans [5]. Group 3: Stock Performance - On September 25, 2025, CarMax reported disappointing financial results, including a 5.4% decline in retail used unit sales and a net income drop from $132.8 million to approximately $95.4 million year-over-year [6]. - Following the financial report, CarMax's stock price fell by $11.45 per share, or about 20%, from $57.05 to $45.60 [7]. - The announcement of CEO Bill Nash's departure and a weak preliminary Q3 2025 outlook led to an additional stock drop of over 24% [7].