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News  ›  GlobeNewswire Inc.

3-WEEK DEADLINE ALERT: CarMax (KMX) Securities Fraud Lawsuit Filed Over Alleged Concealed Demand Pull-Forward and Auto Finance Portfolio Risk -- Hagens Berman

GlobeNewswire Inc. Logo GlobeNewswire Inc. By Reed Kathrein
3-WEEK DEADLINE ALERT: CarMax (KMX) Securities Fraud Lawsuit Filed Over Alleged Concealed Demand Pull-Forward and Auto Finance Portfolio Risk -- Hagens Berman

CarMax faces a securities class action lawsuit alleging executives misled investors about business stability, leading to two significant stock crashes due to unsustainable demand and escalating auto finance risks.

Insights
CME   positive

Launched XRP futures contracts with significant trading volume, suggesting growing market interest


KMX   negative

Stock experienced 44% total decline, CEO termination, massive loan loss provision of $142 million, and allegations of misleading investors about business growth and operational risks