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News  ›  GlobeNewswire Inc.

KMX STOCK NOTICE: CarMax, Inc. Demand Issues and CEO Departure Lead to Securities Class Action – Contact BFA Law before January 2 Legal Deadline

GlobeNewswire Inc. Logo GlobeNewswire Inc. • •By Bleichmar Fonti & Auld Llp
KMX STOCK NOTICE: CarMax, Inc. Demand Issues and CEO Departure Lead to Securities Class Action – Contact BFA Law before January 2 Legal Deadline

A securities class action lawsuit has been filed against CarMax, Inc. for alleged securities fraud following significant stock declines. The company's stock dropped approximately 20% on September 25, 2025, after reporting disappointing Q2 fiscal 2026 results with declines in retail and wholesale unit sales. An additional 24% drop occurred on November 6, 2025, following the unexpected departure of CEO Bill Nash and weak Q3 guidance. The lawsuit alleges CarMax misrepresented demand sustainability, attributing actual demand to temporary tariff-related pull-forward effects rather than fundamental business strength.

Insights
BMLpH   neutral

Buffett trimmed the position by 26.3 million shares, suggesting a measured approach to the financial sector

KMX   negative

Company faces securities fraud allegations, experienced significant stock price declines (20% and 24% drops), reported disappointing financial results with declining sales metrics, and experienced unexpected CEO departure. These factors indicate serious operational and governance concerns.

Keywords
#securities fraud #class action lawsuit #stock decline #CEO departure #demand issues #tariffs #financial results

Tickers
KMX
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