Core Viewpoint - CarMax, Inc. has faced significant challenges, including the termination of its CEO and a bleak outlook for Q3 2026, leading to a substantial drop in share price and investor losses [1][7]. Financial Performance - CarMax reported a 24% decline in net EPS year-over-year for Q2 2026, with retail used unit sales down 5.4% and comparable store used unit sales down 6.3% [5]. - The company's CarMax Auto Finance (CAF) revenue decreased by 11.02% year-over-year, attributed to a $142 million loan loss provision, marking a nearly 40% sequential increase and a 24% year-over-year rise [6]. Management Changes - The company announced the firing of CEO Bill Nash on November 6, 2025, which coincided with a forecasted decline in comparable store used unit sales of 8% to 12% for Q3 2026 [1][7]. Legal Issues - A securities class action lawsuit is underway, focusing on allegations that CarMax misled investors regarding its business model and growth prospects, particularly in light of its previous assurances of sustained earnings growth [3][4]. - The class period for the lawsuit spans from June 20, 2025, to November 5, 2025, with a lead plaintiff deadline set for January 2, 2026 [2][3].

Core Viewpoint - CarMax, Inc. has faced significant challenges, including the firing of CEO Bill Nash and a bleak outlook for Q3 2026, leading to a sharp decline in share prices and raising concerns about the company's business model and growth prospects [1][6]. Financial Performance - CarMax reported a 24% year-over-year decline in net EPS for Q2 2026, with retail used unit sales down 5.4% and comparable store used unit sales down 6.3% [4]. - The company's CarMax Auto Finance (CAF) revenue decreased by 11.02% year-over-year, attributed to a $142 million loan loss provision, which marked a nearly 40% sequential increase and a 24% year-over-year rise [5]. Legal and Regulatory Issues - A securities class action lawsuit is underway, focusing on allegations that CarMax misled investors regarding its business model and growth prospects during the Class Period from June 20, 2025, to November 5, 2025 [2][3]. - The lawsuit claims that CarMax's positive Q1 2026 results were misleading, as they were influenced by consumers accelerating car purchases to avoid tariffs [3]. Management Changes - The termination of CEO Bill Nash on November 6, 2025, coincided with the announcement of an expected decline in Q3 comparable store used unit sales by 8% to 12% from the previous year [1][6].

Core Viewpoint - Berger Montague is investigating potential securities law violations involving Petco Health and Wellness Company, with a class action lawsuit filed for investors who acquired Petco securities between January 14, 2021, and June 5, 2025 [1][2] Group 1: Legal Action and Allegations - A class action lawsuit has been initiated on behalf of investors who purchased Petco securities during the specified Class Period [1][2] - The complaint alleges that Petco made materially false and misleading statements regarding its pandemic-related advantages and the sustainability of its premium pet food business model [3] - It is claimed that the Company overstated its ability to achieve profitable growth while downplaying operational challenges, leading to significant stock price declines [3] Group 2: Stock Performance Impact - Petco's stock price experienced a drop of over 20% on August 24, 2023, following a downward revision of its financial guidance [3] - Further declines in stock price occurred after subsequent disclosures and changes in leadership [3]