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

GlobeNewswire Inc. • Dec 20, 2025 8:52am (New York) •By Hagens Berman

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

Hagens Berman has filed a securities class action lawsuit against CarMax (KMX) alleging that the company and its executives misled investors about business stability and growth prospects. The lawsuit centers on two main issues: undisclosed temporary demand driven by tariff-related customer pull-forward and concealed risks in CarMax Auto Finance's loan portfolio. The stock declined 44% following a September earnings miss and November CEO termination. The Lead Plaintiff Deadline is January 2, 2026.

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Insights

KMX negative

CarMax faces serious allegations of securities fraud involving concealment of unsustainable demand driven by tariff-related pull-forward and escalating risks in its auto finance portfolio. The company experienced a 44% stock decline, a 24% EPS fall, unexpected $142 million loan loss provision increase, and CEO termination, indicating fundamental operational weakness and investor deception.

Keywords

#securities fraud #class action lawsuit #demand pull-forward #auto finance risk #loan loss provision #CEO termination #earnings miss #investor losses

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KMX

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