DENVER, Aug. 8, 2008 LAWFUEL – — Dyer & Berens LLP
(www.DyerBerens.com) today announced that it has filed a class action
lawsuit in the United States District Court for the Eastern District of
Virginia on behalf of purchasers of CarMax, Inc. (“CarMax” or the
“Company”) (NYSE:KMX) 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. If you are a CarMax investor
and would like to discuss a potential lead plaintiff appointment, or
your rights and interests with respect to the lawsuit, you may contact
Jeffrey A. Berens, Esq. at 1-888-300-3362, 303-861-1764, or via email
at jeff@dyerberens.com.This e-mail address is being protected from spam
bots, you need JavaScript enabled to view it
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. The plaintiff is
represented by Dyer & Berens LLP, which has expertise in prosecuting
investor class actions and extensive experience in actions involving
financial fraud. The firm’s extensive experience in securities
litigation, particularly in cases brought under the Private Securities
Litigation Reform Act, has contributed to the recovery of hundreds of
millions of dollars for aggrieved investors. For more information about
the firm, please go to www.DyerBerens.com.
More information on this and other class actions can be found on the
Class Action Newsline at www.primenewswire.com/ca
