CARMAX LAWSUIT: CarMax, Inc. (KMX) Hit with Securities Class Action after 24% Stock Drop, Contact BFA Law if You Suffered Losses

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]. Company 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 company's net income for Q2 was approximately $95.4 million, down from $132.8 million in the previous year [6]. Stock Price Movement - Following the announcement of disappointing financial results on September 25, 2025, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 to $45.60 [7]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 outlook, led to an additional stock price drop of over 24% [7]. Legal Context - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in CarMax securities [3]. - Investors have until January 2, 2026, to request to be appointed to lead the case, which is pending in the U.S. District Court for the District of Maryland [3]. Market Dynamics - CarMax had previously promoted strong demand for its vehicles, which was allegedly inflated by a short-term boost from U.S. tariffs on cars, leading to a "pull forward" in demand [4][6].