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 has been accused of securities fraud due to misleading statements regarding the demand for its used cars, which was allegedly inflated by short-term factors such as U.S. tariffs [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 - A securities class action lawsuit has been filed against CarMax, Inc. by the Indiana Public Retirement System, alleging that the company misled investors regarding its financial health and inventory management during a specified class period [1][2]. Group 1: Lawsuit Details - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, covering all individuals and entities that purchased CarMax securities between June 20, 2025, and November 5, 2025 [1]. - The complaint expands upon a previous action by including additional allegations against CarMax's Executive Vice President Jon Daniels and claims regarding misleading information about loan-loss reserves and used car inventory value [2]. Group 2: Allegations Against CarMax - The action alleges that CarMax failed to disclose that its 2022 and 2023 vintage loans were underperforming and that its loss reserves were inadequate to cover these loans [5]. - It is claimed that CarMax had an oversupply of vehicles in early 2025, leading to significant depreciation of its inventory, and that mid-2025 sales were artificially boosted by customer concerns over potential new-car tariffs [5]. - The lawsuit contends that these factors resulted in the company materially overstating customer receivables, inventory values, and earnings, misleading investors about its business operations and growth prospects [5]. Group 3: Impact on Stock Price - Investors became aware of the alleged misconduct following two disclosures: the first on September 25, 2025, when CarMax reported disappointing sales and a $71 million increase in loss provisions, causing a stock price decline of over 20 percent [6]. - The second disclosure occurred on November 4, 2025, with the announcement of CEO William Nash's termination and warnings of further sales declines, leading to an additional stock price drop of more than 24 percent [6]. Group 4: Investor Participation - Investors who purchased CarMax securities during the class period may seek to be appointed as Lead Plaintiff, with motions required to be filed by January 2, 2026 [3][7]. - Class members do not need to seek Lead Plaintiff status to participate in any potential recovery from the lawsuit [7]. Group 5: Law Firm Representation - The Indiana Public Retirement System is represented by Labaton Keller Sucharow LLP, a firm known for its extensive experience in securities litigation and representing large pension funds with over $4.5 trillion in assets under management [9].

Core Viewpoint - A securities class action lawsuit has been filed against CarMax, Inc. alleging that the company misled investors about its business stability and growth prospects, resulting in significant stock declines [2][4]. Summary by Relevant Sections Lawsuit Details - The lawsuit claims that CarMax and its executives concealed critical information regarding the company's operational challenges, leading to two major stock crashes [2][5]. - The class period for the lawsuit is defined as June 20, 2025, to November 5, 2025 [3]. Allegations - **Alleged Concealment**: CarMax reportedly misrepresented the sustainability of customer demand, attributing sales growth to a temporary surge caused by customers buying early to avoid tariffs [4]. - **Alleged Misrepresentations**: Management assured investors of strong growth while failing to disclose escalating risks in their lending portfolio, which included a significant loan loss provision of $142 million, a 40% increase sequentially [4]. - **Adverse Impact on Business**: The termination of the CEO and subsequent drastic cuts to forward guidance indicated systemic weaknesses within the company's operations [4]. Stock Performance - The stock experienced a 44% decline following a disappointing earnings report in September and the CEO's termination in November, with a 20% drop occurring after the September earnings miss [2][4].

Core Viewpoint - An amended securities class action lawsuit has been filed against CarMax, Inc., expanding the class period to include those who purchased or acquired CarMax securities between June 20, 2025, and November 5, 2025, with a lead plaintiff deadline set for January 2, 2026 [1]. Group 1: Allegations Against CarMax - The complaint alleges that during the class period, CarMax's defendants made false and misleading statements regarding the company's growth prospects, overstating them based on temporary benefits from customer behavior influenced by tariff speculation [2]. - It is claimed that the positive statements made by the defendants about CarMax's business operations and prospects were materially misleading and lacked a reasonable basis throughout the relevant times [2]. Group 2: Lead Plaintiff Process - Investors in CarMax may seek to be appointed as lead plaintiff representatives of the class by January 2, 2026, or may choose to remain absent class members [3]. - The lead plaintiff will act on behalf of all class members in directing the litigation and is typically the investor or small group of investors with the largest financial interest [3]. Group 3: Law Firm Information - Kessler Topaz Meltzer & Check, LLP is a prominent U.S. plaintiff-side law firm specializing in securities-fraud class actions and global investor protection, representing both individual and institutional investors [4]. - The firm has achieved significant recoveries in securities litigation and has received numerous accolades for its work in this field [4].

Financial Performance - CarMax reported net sales and operating revenues of $5,793.9 million for the third quarter of fiscal 2026, a decrease of 6.9% compared to the same period in fiscal 2025[128]. - Gross profit for the third quarter was $590.0 million, down 12.9% year-over-year, while net earnings fell to $62.2 million, a decline of 50.4%[128]. - Used vehicle unit sales decreased by 8.0% to 169,557 units in the third quarter, with a comparable store sales decline of 9.0%[128]. - Used vehicle sales decreased by 7.0% to $4,548.2 million for the three months ended November 30, 2025, compared to $4,888.9 million in the same period of 2024[144]. - Total net sales and operating revenues fell by 6.9% to $5,793.9 million for the three months ended November 30, 2025, down from $6,223.4 million in 2024[144]. - Used vehicle unit sales declined by 8.0% to 169,557 units for the three months ended November 30, 2025, compared to 184,243 units in 2024[145]. - Gross profit for used vehicles decreased by 10.8% to $378.9 million for the three months ended November 30, 2025, compared to $424.8 million in 2024[158]. - Other sales and revenues decreased by 9.2% to $150.6 million for the three months ended November 30, 2025, down from $165.9 million in 2024[144]. - Wholesale vehicle revenues decreased by 6.3% to $114.8 million for the three months ended November 30, 2025, compared to $138.1 million in 2024[154]. Strategic Initiatives - The company aims to reduce SG&A expenses by at least $150 million by the end of fiscal 2027, with an initial step involving a 30% reduction in the Customer Experience Centers workforce, expected to save approximately $35 million annually[137]. - CarMax plans to enhance profitability through new product offerings, including the redesigned MaxCare plan and the new MaxCare Plus plan, with a nationwide rollout expected in the first quarter of fiscal 2027[136]. - The company opened five new stores and three stand-alone reconditioning/auction centers in the first nine months of fiscal 2026, expanding its footprint to 255 used car stores across 110 U.S. television markets[141]. - The company plans to open one additional store and one additional stand-alone reconditioning/auction center for the remainder of fiscal 2026[186]. Market Position and Competition - CarMax's average selling prices have increased, prompting a strategy to lower margins and increase marketing spend to remain competitive[135]. - CarMax's market share for age 0- to 10-year-old vehicles sold nationwide was approximately 3.7% in calendar 2024, consistent with the previous year, but is expected to decrease for the full calendar year due to sales pressures[140]. Auto Financing - CarMax Auto Finance (CAF) financed 42.3% of retail used vehicle unit sales in the first nine months of fiscal 2026, with a portfolio of $16.53 billion servicing approximately 1.0 million customer accounts[123]. - CAF income for Q3 FY2026 was $174.7 million, an increase from $159.9 million in Q3 FY2025[183]. - The average auto loans outstanding for Q3 FY2026 was $16,805.2 million, compared to $17,771.7 million in Q3 FY2025[183]. - The company expects to receive approximately $40 million to $45 million in additional CAF income related to servicing fees from a recent securitization transaction[178]. - The company aims to increase CAF penetration to 50%, with each additional percentage point expected to generate $10 million to $12 million in lifetime pre-tax income per year of origination[180]. - Net auto loans originated in the three months ended November 30, 2025, were $1,761.4 million, a decrease from $1,942.8 million in the same period of 2024[184]. - The net penetration rate for auto loans was 42.6% for the three months ended November 30, 2025, compared to 43.1% for the same period in 2024[184]. Inventory and Capital Management - As of November 30, 2025, total inventory was $3.13 billion, a decrease of $806.7 million compared to the start of the fiscal year[191]. - Net cash provided by operating activities totaled $2.34 billion for the first nine months of fiscal 2026, compared to $478.1 million in the prior year period[190]. - Capital expenditures for fiscal 2026 are estimated to total approximately $575 million, up from $467.9 million in fiscal 2025[186]. - Net payments on non-recourse notes payable were $1.15 billion in the first nine months of fiscal 2026, compared to net issuances of $229.3 million in the prior year period[197]. - As of November 30, 2025, the company had $12.94 billion and $3.03 billion of non-recourse notes payable outstanding related to asset-backed term funding transactions and warehouse facilities, respectively[204]. - The company had $3.32 billion of unused capacity in its warehouse facilities as of November 30, 2025[204]. - A total of $2 billion of board authorizations for share repurchases was outstanding as of November 30, 2025, with $1.36 billion remaining available for repurchase[207]. Risk Factors - The company cautioned that various factors, including changes in economic conditions and competitive landscape, could materially affect future results and expectations[209]. - There have been no material changes to the company's market risk since February 28, 2025[211]. - The company highlighted the importance of successfully managing growth and retaining key associates as critical to its future performance[212]. - The company emphasized the potential impact of credit losses on its auto loan portfolio due to changes in economic conditions[212]. - The company noted the risks associated with its strategic investments and the performance of third-party vendors[212]. - The company acknowledged the potential volatility in the market price for its common stock as a risk factor[212].

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][2]. Group 1: Lawsuit Details - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [2]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [2]. 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 [5]. - 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 [5]. - Following the financial report, CarMax's stock dropped $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [6]. - An unexpected departure of CEO Bill Nash on November 6, 2025, and a weak preliminary Q3 outlook led to an additional stock drop of over 24% [6]. Group 3: Company Background - CarMax is a leading retailer of used cars, emphasizing a seamless customer experience and strong demand for its vehicles [3]. - The law firm Bleichmar Fonti & Auld LLP, which is representing the plaintiffs, has a notable track record in securities class actions and has recovered significant amounts for investors in previous cases [10].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased CarMax, Inc. securities between June 20, 2025, and November 5, 2025, about the January 2, 2026, deadline to become a lead plaintiff 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 submitting a form or contacting the 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 been recognized for its performance in securities class action settlements, ranking No. 1 in 2017 and consistently in the top 4 since 2013, recovering hundreds of millions for investors [4].

NEW YORK, Dec. 22, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of CarMax, Inc. (NYSE: KMX). Shareholders who purchased shares of KMX during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/carmax-inc-loss-submission-form/?id=180990&from=3 CLASS PERIOD: June 20, 2025 to November ...

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].

Core Viewpoint - The lawsuit against CarMax, Inc. alleges that the company misled investors by presenting unsustainable growth as robust and failing to disclose significant risks in its loan portfolio [2][4]. Group 1: Allegations and Investigations - The lawsuit claims that CarMax's executives provided materially false and misleading information regarding the company's growth, which was characterized as a temporary "pull forward" of customer demand [2]. - The investigation by Hagens Berman focuses on whether CarMax prioritized short-term optics over transparency, particularly regarding a significant increase in the loan loss provision for the CarMax Auto Finance (CAF) portfolio [3]. Group 2: Financial Impact and Stock Performance - Following the Q2 2026 earnings report, CarMax's stock fell by 20%, with comparable unit sales down by 6.3%, due to misrepresentations about demand and the effects of tariffs [5]. - The departure of the CEO and weak Q3 guidance led to a 24% drop in stock price, highlighting undisclosed business weaknesses and lack of sustainable growth prospects [5]. - An increase of $142 million in the loan loss provision for the CAF portfolio was reported, indicating misrepresentation of the quality and risk associated with the loan portfolio [5]. Group 3: Legal Proceedings and Next Steps - The lawsuit specifically targets investors who purchased CarMax securities between June 20, 2025, and November 5, 2025, and highlights the dual stock crashes as a result of the alleged misrepresentations [5]. - Hagens Berman has a history of securing over $325 billion in settlements and is advising affected investors to discuss their rights [6].