Core Viewpoint - The article discusses a securities class action lawsuit 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 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 - The complaint identifies two main issues that allegedly inflated the stock price: - **Unsustainable Demand**: CarMax reported strong growth for Q1 2026 but failed to disclose that this was due to a temporary surge in customer demand driven by anticipated tariffs [4]. - **CarMax Auto Finance Risk**: Management assured investors about the stability of their loan reserves, which later revealed a significant increase in loan loss provisions amounting to $142 million, a 40% sequential increase [4]. Impact on Business - The lawsuit highlights a distortion in core retail demand that could not be maintained in subsequent quarters, leading to a drastic cut in forward guidance and signaling systemic weaknesses in business operations [4]. - The stock experienced a 20% decline following the announcement of disappointing Q2 results, which included a 24% drop in net EPS and the unexpected loan loss provision [4]. Investor Actions - Investors who purchased CarMax securities during the class period and suffered losses are encouraged to contact Hagens Berman to discuss their rights and potential involvement in the lawsuit [5][6].

Core Insights - CarMax, Inc. is set to release its quarterly earnings on December 18, 2025, with Wall Street expecting an EPS of $0.32 and revenue of approximately $5.64 billion [1][6] - The company is currently facing multiple securities fraud class action lawsuits, which may negatively impact investor sentiment [2][3][6] Legal Challenges - A securities fraud class action lawsuit has been initiated against CarMax, alleging that executives failed to disclose critical information and overstated growth prospects due to tariff speculation [2] - Another class action lawsuit targets individuals who purchased CarMax securities between June 20, 2025, and November 5, 2025, accusing the company of making false or misleading statements [3] - Faruqi & Faruqi, LLP is investigating potential claims related to losses incurred between June 20, 2025, and September 24, 2025, urging investors to consider their legal options [4] Financial Metrics - CarMax has a price-to-earnings (P/E) ratio of 11.77, indicating a relatively low market valuation compared to its revenue [5][6] - The company’s price-to-sales ratio stands at 0.24, and its enterprise value to sales ratio is 0.89, further suggesting a low market valuation [5] - CarMax's debt-to-equity ratio is 2.87, indicating significant financial leverage, while a current ratio of 2.46 shows its ability to cover short-term liabilities [5][6]

New York, New York--(Newsfile Corp. - December 16, 2025) - Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against CarMax, Inc. (NYSE: KMX) and certain of the Company's senior executives for securities fraud after a significant stock drop resulting from the potential violations of the federal securities laws. If you invested in CarMax, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/carmax-inc-class-ac ...

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In CarMax To Contact Him Directly To Discuss Their OptionsIf you purchased or acquired securities in CarMax between June 20, 2025 and September 24, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here for additional information]New York, New York--(Newsfile Corp. - December 16, 202 ...

NEW YORK, Dec. 16, 2025 /PRNewswire/ -- 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-submissio ...

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, 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: Reasons for the Lawsuit - CarMax has been accused of misleading investors regarding the demand for its used cars, claiming it was strong and sustainable, while the reality was a temporary boost in demand 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 adequately 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: Rosen Law Firm's 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 ranked No. 1 for securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions for investors [4].

Lead Plaintiff Deadline: January 2, 2026. The Dual Focus of the CarMax (KMX) Securities Fraud Suit The complaint highlights two central, undisclosed issues that allegedly led to the stock's inflation and ultimate collapse: Partner Reed Kathrein Urges KMX Investors to Contact Firm Before January 2, 2026 Lead Plaintiff Deadline SAN FRANCISCO, Dec. 15, 2025 /PRNewswire/ -- National investor rights law firm Hagens Berman reminds investors that the Lead Plaintiff Deadline in the securities class action lawsuit a ...

NEW YORK, Dec. 15, 2025 /PRNewswire/ -- 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=180155&from=4  CLASS PERIOD: June 20, 2025 to November 5 ...

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and its 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 [5]. - Following the announcement of these results, 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 [6]. - 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% [6]. Group 3: Market Context - CarMax had previously promoted strong demand for its vehicles, which was allegedly inflated by a temporary surge in purchases before U.S. tariffs on cars took effect [3][5]. - The lawsuit and stock performance issues highlight potential mismanagement or misrepresentation of the company's financial health and market conditions [4][5].