Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against CarMax, Inc. (KMX)

Core Viewpoint - A securities class action lawsuit has been filed against CarMax, Inc. for allegedly misleading investors regarding the company's financial health and operational performance during the specified class period from June 20, 2025, to November 5, 2025 [1] Group 1: Allegations - The Complaint alleges that CarMax failed to disclose underperformance of its 2022 and 2023 vintage loans [2] - It is claimed that CarMax's loss reserves were inadequate to cover the underperforming loans [2] - The company reportedly had an oversupply of vehicles in early 2025, leading to significant depreciation of its inventory [2] - The sales boost in mid-2025 was primarily driven by customers purchasing used cars due to concerns over potential new-car tariffs [2] - The allegations suggest that CarMax materially overstated customer receivables, inventory values, and earnings, misleading investors about its business and growth prospects [2] Group 2: Stock Price Impact - The truth about CarMax's financial situation emerged through two corrective disclosures, the first being on September 25, 2025, when the company reported weak fiscal Q2 2026 results, leading to a 20.1% drop in stock price [3] - The second disclosure occurred on November 4, 2025, when CarMax announced the termination of CEO William Nash and warned of a sharp decline in used-car sales, resulting in an additional 24.3% decline in stock price [3]