NEW YORK, Aug. 8, 2008 (LAWFUEL) — The Brualdi Law Firm, P.C.
announces that a lawsuit has been commenced 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
(the “Class Period”) for violations of federal securities laws.
No class has yet been certified in the above action. Until a class is
certified, you are not represented by counsel unless you retain one. If
you purchased CarMax common stock during the period described above,
you have certain rights, and have until no later than October 5, 2008
in which to move for Lead Plaintiff status. 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.
To be a member of the class you need not take any action at this time,
and you may retain counsel of your choice. If you wish to discuss this
action or have any questions concerning this Notice or your rights or
interests with respect to these matters, please contact Sue Lee at The
Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York
10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by
email to slee@brualdilawfirm.com or visit our website at
http://www.brualdilawfirm.com.
The complaint alleges that, during the Class Period, 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, CarMax publicly issued materially false and
misleading statements and failed to disclose: (i) that CarMax was not
positioned to meet its sales targets or earnings objectives for fiscal
2009; (ii) that the Company 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, defendants had no
reasonable basis for their revenues and earnings guidance for fiscal
2009.
On June 18, 2008, the Company issued a press release announcing its
financial results for the first quarter of fiscal 2009, the period
ended May 31, 2008. The Company also announced that it was suspending
its financial guidance for the rest of fiscal 2009. Upon this news,
shares of the Company’s stock fell $2 per share, or approximately 11%,
to close at $16.34 per share, on heavy trading volume.
