KMX INVESTOR LOSSES: CarMax, Inc. Investors May have been Affected by Fraud – Contact BFA Law by January 2 to Protect Your Rights

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 [3]. - Investors have until January 2, 2026, to request to be appointed to lead the case [3]. Group 2: Financial 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 net income for Q2 was approximately $95.4 million, down from $132.8 million in the previous year [6]. Group 3: Stock Price Movement - Following the financial results announcement on September 25, 2025, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 to $45.60 [7]. - The 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]. Group 4: Company Operations - CarMax has been accused of misleading investors regarding the demand for its cars, which was allegedly boosted by short-term factors such as U.S. tariffs, rather than sustainable demand [4]. - The firm is also under investigation for how it assessed or reserved for its portfolio of car loans following the CEO's departure [5].