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News  ›  GlobeNewswire Inc.

KMX SHAREHOLDER ACTION REMINDER: Faruqi & Faruqi, LLP Announces that CarMax Investors Have Opportunity to Lead Class Action Lawsuit

GlobeNewswire Inc. Logo GlobeNewswire Inc. By Faruqi & Faruqi, Llp
KMX SHAREHOLDER ACTION REMINDER: Faruqi & Faruqi, LLP Announces that CarMax Investors Have Opportunity to Lead Class Action Lawsuit

Faruqi & Faruqi, LLP is investigating claims against CarMax for allegedly making false statements about growth prospects. The company overstated growth driven by temporary tariff-related speculation. CarMax's stock fell 20% after disclosing a $142.2 million provision for loan losses in Q2 fiscal 2026, with significant increases in estimated lifetime losses on existing loans. Investors have until January 2, 2026 to seek lead plaintiff status in the federal securities class action.

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CarMax faces federal securities class action allegations for making false and misleading statements about growth prospects. The company's stock declined 20% following disclosure of significantly higher loan loss provisions ($142.2M vs $112.6M prior year) and worsening performance in loan portfolios. The lawsuit alleges executives recklessly overstated growth that was primarily driven by temporary tariff-related speculation rather than sustainable business fundamentals.