KMX CLASS ACTION ALERT: CarMax, Inc. Sued for Securities Fraud after Demand Issues and CEO Departure, Investors Notified to Contact BFA Law by Friday's 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]. 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: 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 on September 24, 2025, 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 2025 outlook, led to an additional stock drop of over 24% [7]. Group 3: Company Background - CarMax operates in the used car sales industry, promoting a strong demand for its vehicles based on customer experience [4]. - The firm Bleichmar Fonti & Auld LLP, known for representing plaintiffs in securities class actions, is leading the lawsuit against CarMax [9].