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, and claims are made under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. - Investors have until January 2, 2026, to request to be appointed to lead the case [3]. Group 2: Reasons for the Lawsuit - CarMax is accused of misleading investors by promoting strong demand for its used cars, which was allegedly inflated by a temporary boost in sales 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 properly 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].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased CarMax, Inc. securities between June 20, 2025, and November 5, 2025, of the January 2, 2026, deadline to become lead plaintiffs in a securities class action lawsuit [1]. Group 1: Class Action Details - Investors who bought CarMax securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties can join by contacting Rosen Law Firm [3][6]. - The lawsuit alleges that CarMax's defendants made materially false and misleading statements regarding the company's growth prospects, which were overstated due to temporary market conditions [5]. Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements, including the largest securities class action settlement against a Chinese company [4]. - The firm has consistently ranked among the top firms for securities class action settlements, recovering hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4].

Core Viewpoint - CarMax, Inc. is facing a securities fraud class action lawsuit due to significant revenue and profit declines reported in its second quarter 2026 financial results, which led to a substantial drop in its share price [2][3][4]. Financial Performance - For the second quarter of 2026, CarMax reported a revenue decline of 6.0% year over year, with total retail used vehicle revenues decreasing by 7.2% and total gross profit declining by 5.6% [2]. - The company attributed these declines to inventory adjustments and a $71.3 million increase in loan loss provisions [2]. Share Price Impact - Following the financial results announcement on September 25, 2025, CarMax's share price fell by $11.45, or 20.1%, closing at $45.60 per share [3]. Lawsuit Details - The class action lawsuit alleges that CarMax's management made materially false and misleading statements regarding the company's growth prospects, which were overstated and not reflective of the actual business conditions [4]. - Specifically, it is claimed that the earlier growth in the 2026 fiscal year was a temporary effect driven by customer speculation regarding tariffs, which was not disclosed to investors [4]. Participation Information - Investors who acquired CarMax securities between June 20, 2025, and November 5, 2025, have until January 2, 2026, to seek appointment as lead plaintiff in the class action lawsuit [5].

Core Insights - CarMax, Inc. is facing challenges with declining sales volume, increased marketing expenses, and heightened competition in the used vehicle retail market [1][8] Sales Performance - The company anticipates a decline in sales performance for the fiscal fourth quarter, which is expected to negatively impact service margins due to lower sales volumes [2][8] - CarMax's average selling prices have increased, making them less attractive to customers, prompting the company to reduce margins and increase marketing spending to remain competitive [3][8] Financial Health - As of November 30, 2025, CarMax reported cash and cash equivalents of $204.9 million and long-term debt of $1.17 billion, resulting in a long-term debt-to-capital ratio of 0.73, significantly higher than the auto sector average of 0.18 [4] - The company's times interest earned ratio stands at 6.8, which is lower than the auto sector's average of 25.24, indicating financial strain [4] Competitive Landscape - The automotive retail market is highly competitive, with CarMax facing pressure from traditional dealers, online platforms, and private sellers, all offering similar vehicles at comparable prices [5] - The rise of online car buying and well-funded e-commerce entrants poses a threat to CarMax's margins and overall business model, necessitating effective responses to maintain sales and operations [5]

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by certain officers and directors of CarMax, Inc. related to misrepresentation of the company's growth prospects [1][2]. Group 1: Investigation Details - The investigation is focused on whether CarMax insiders misrepresented or failed to disclose critical information regarding the company's growth, which was influenced by temporary factors such as customer speculation about tariffs [2]. - Allegations suggest that statements made about CarMax's business operations and future prospects were materially false and misleading, lacking a reasonable basis during relevant times [2]. Group 2: Shareholder Participation - Shareholders who purchased KMX shares prior to June 20, 2025, are encouraged to contact Kuehn Law for potential legal action, as there may be limited time to enforce their rights [3]. - The firm covers all case costs and does not charge its investor clients, emphasizing the importance of shareholder involvement in maintaining market integrity [4].

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 Overview - CarMax, Inc. is a retailer specializing in used cars, which has recently faced legal challenges due to allegations of misleading investors regarding demand for its vehicles [4]. Financial Performance - In the second quarter of fiscal year 2026, CarMax reported disappointing financial results, 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 the second quarter was approximately $95.4 million, down from $132.8 million in the previous year [6]. Stock Performance - 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 outlook for Q3 2025, led to an additional stock price drop of over 24% [7]. Legal Proceedings - Investors have until January 2, 2026, to request to be appointed to lead the class action case, which is currently pending in the U.S. District Court for the District of Maryland [3]. - 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].

Core Viewpoint - Investors have until January 2, 2026, to file lead plaintiff applications in securities class action lawsuits against CarMax, Inc. for securities purchased between June 20, 2025, and November 5, 2025 [1] Group 1 - The lawsuits are being led by Kahn Swick & Foti, LLC and former Louisiana Attorney General Charles C. Foti, Jr. [1] - The class action pertains to investors who acquired CarMax's securities during the specified class period [1]

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].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. for allegedly making false and misleading statements regarding its growth prospects during the Class Period from June 20, 2025, to September 24, 2025, leading to investor losses [5]. Allegation Details - The lawsuit claims that CarMax's management overstated the company's growth potential, attributing earlier growth in fiscal year 2026 to temporary factors related to customer behavior influenced by tariff speculation [5]. - It is alleged that the statements made by the defendants about CarMax's business operations and future prospects were materially false and misleading [5]. Financial Performance - On April 10, 2025, CarMax reported its fourth quarter and fiscal year 2025 results, which missed consensus estimates, leading to a stock price drop of $13.61, or 17%, closing at $66.45 per share [5]. - On September 25, 2025, CarMax disclosed significant declines in revenue and profit, including a 6.0% revenue decline, a 7.2% decline in total retail used vehicle revenues, and a 5.6% decline in total gross profit, resulting in a further stock price drop of $11.45, or 20.1%, closing at $45.60 per share [5].

NEW YORK, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in CarMax, Inc. ("CarMax, Inc." or the "Company") (NYSE: KMX) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of CarMax, Inc. investors who were adversely affected by alleged securities fraud between June 20, 2025 and November 5, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/carmax-inc-lawsuit-submis ...