DENVER, Aug. 8, 2008 (PRIME NEWSWIRE) -- 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.
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