2008-08-07 23:52:03 -
- The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Virginia on behalf of those who purchased the common stock of CarMax, Inc. ("CarMax" or the "Company") (NYSE:
KMX) between April 2, 2008 and June 17, 2008, inclusive (the "Class Period").
The Complaint charges that CarMax and certain of its officers and directors violated federal securities laws by issuing materially false statements. Specifically, it is alleged 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.
If you are a member of the class, you may, no later than October 6, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Izard Nobel LLP toll-free at (800) 797-5499, or by e-mail at
firm@izardnobel.com, or visit our website: www.izardnobel.com.
Izard Nobel LLP
Wayne T. Boulton or Nancy A. Kulesa, 800-797-5499
www.izardnobel.com
firm@izardnobel.com 
