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CarMax Inc KMX Securities Stock Fraud

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Company: CarMax Inc
Ticker Symbol: KMX
Class Period: Apr-2-08 to Jun-17-08
Date Filed: Aug-8-08
Lead Plaintiff Deadline: Oct-7-08
Court: Eastern District of Virginia
Allegations:
A class action lawsuit in the United States District Court for the Eastern District of Virginia on behalf of purchasers of CarMax, Inc.common stock during the period between April 2, 2008 and June 17, 2008, inclusive (the "Class Period"). The complaint charges CarMax and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

If you are a purchaser of CarMax common stock during the Class Period, you have the right to petition the Court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made on or before October 6, 2008. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The class action complaint alleges that the defendants issued false and misleading statements concerning CarMax's financial performance and prospects. In particular, CarMax was not meeting internal sales targets and was facing a 55% shortfall in its net income for first quarter of fiscal year 2009, later prompting the Company to suspend its financial guidance for the rest of fiscal 2009. According to the complaint, defendants improperly failed to disclose that: (i) the Company was not positioned to meet its sales targets or earnings objectives for fiscal 2009; (ii) CarMax had completed a refinancing of its warehouse facility which had materially increased the Company's funding costs; and (iii) as a result of the foregoing, the Company had no reasonable basis for its financial guidance for fiscal 2009. In the meantime, the individual defendants allegedly sold 365,816 shares of their personally-held CarMax common stock for gross proceeds in excess of $7.6 million.

On June 18, 2008, the Company announced its financial results for the first quarter of fiscal 2009, the period ended May 31, 2008. CarMax also announced that it was suspending its financial guidance for the rest of fiscal 2009. In response, the price of CarMax's common stock fell approximately 11%, closing below $17.00 per share.

Plaintiff seeks to recover damages on behalf of all purchasers of CarMax common stock during the Class Period.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

CarMax Inc KMX Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible CarMax Inc securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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