Core Viewpoint - CarMax, Inc. is facing a class action lawsuit for securities fraud following a significant drop in stock price attributed to misleading statements regarding demand and financial performance [2][4]. Group 1: Lawsuit Details - A class action lawsuit has been filed against CarMax and its senior executives for securities fraud, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [4]. - Investors have until January 2, 2025, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [4]. - The lawsuit alleges that CarMax misled investors about the sustainability of demand for its vehicles, particularly in light of U.S. tariffs on cars [5]. Group 2: Financial Performance - 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 [7]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million in the previous year [7]. - The decline in sales was attributed to a "pull forward" in demand due to the announcement of tariffs, which led to a temporary increase in purchases before the tariffs took effect [7]. Group 3: Stock Price Reaction - Following the disappointing financial results announced on September 25, 2025, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 to $45.60 [8]. - An additional drop of over 24% occurred after the unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary outlook for Q3 2025 [8].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant drop in stock price due to potential violations of federal securities laws [1][2]. Group 1: Lawsuit Details - Investors have until January 2, 2025, 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: Reasons for the Lawsuit - CarMax has been accused of misleading investors about the demand for its used cars, which was allegedly inflated by short-term factors such as U.S. tariffs [3]. - The company reported disappointing financial results for Q2 FY 2026, including a 5.4% decline in retail used unit sales and a net income drop from $132.8 million to $95.4 million year-over-year [5]. Group 3: Stock Performance - Following the announcement of poor financial results on September 25, 2025, CarMax's stock price fell by $11.45, or approximately 20%, from $57.05 to $45.60 per share [6]. - The 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% [6].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant drop in stock price due to potential violations of federal securities laws [1][2]. Company Overview - CarMax, Inc. is a leading retailer of used cars, which has recently faced legal challenges and stock price volatility [3]. Legal Proceedings - Investors have until January 2, 2025, to request to lead the case in the U.S. District Court for the District of Maryland, under the case caption Jason Cap v. CarMax, Inc., et al. [2]. - The lawsuit claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [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 [5]. - The net income for the second quarter was approximately $95.4 million, down from $132.8 million in the previous year [5]. Stock Price Movement - Following the announcement of poor financial results on September 25, 2025, CarMax's stock price fell by $11.45 per share, or about 20%, from $57.05 to $45.60 [6]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 2025 outlook, led to an additional drop of over 15% in stock price [6].

SAN DIEGO, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Robbins LLP reminds stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired CarMax, Inc. (NYSE:KMX) securities between June 20, 2025 and September 24, 2025. CarMax sells used cars. It describes itself as the “nation’s largest retailer of used vehicles.” For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. The Allegations: Robbins LLP is Investigating Allegation ...

Group 1 - CarMax, Inc. is under investigation for potential violations of federal securities laws by Bleichmar Fonti & Auld LLP [1] - The investigation stems from claims that CarMax misrepresented the sustainability of demand for its used cars, which was temporarily boosted by U.S. tariffs [2] - Following the announcement of disappointing Q2 2025 earnings, CarMax experienced significant stock declines, with a 20% drop from $57.05 to $45.60 per share [3] Group 2 - In Q2 2025, CarMax reported 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 [3] - The company's net earnings for Q2 were approximately $95.4 million, down from $132.8 million in the previous year, attributed to a "pull forward" in demand due to tariff announcements [3]

Core Viewpoint - CarMax, Inc. is under investigation by Bleichmar Fonti & Auld LLP for potential violations of federal securities laws related to its claims about strong and sustainable demand for used cars [1] Company Summary - CarMax, Inc. operates in the used car sales industry [1] - The company has been promoting the strength and sustainability of demand for its vehicles during the relevant period [1]