According to a press release a law firm is currently investigating possible federal securities laws violations by the CarMax, Inc. (NYSE: KMX).

According to the press release the investigation focuses on whether the CarMax, Inc. (NYSE: KMX) misrepresented its financial condition in its public statements and SEC filings prior to announcing a 55% decrease in fiscal-first-quarter net income on June 18, 2008. According to the press release the investigation also seeks to determine whether certain insider trading that occurred shortly before the June 18, 2008 announcement was unlawful. According to the investigation CarMax, Inc publicly issued materially false and misleading statements and failed to disclose that it was not positioned to meet its sales targets or earnings objectives for fiscal 2009; that it had completed a refinancing of its warehouse facility which had materially increased the its funding costs; and as a result of the foregoing, CarMax Inc and its officers had no reasonable basis for their revenues and earnings guidance for fiscal 2009. Then on June 18, 2008, so the investigation, Carmax, Inc. issued a press release announcing its financial results for the first quarter of fiscal 2009, the period ended May 31, 2008 and also announced that it was suspending its financial guidance for the rest of fiscal 2009. As a result upon this news shares of the Companys stock fell $2 per share, or approximately 11%, to close at $16.34 per share, on heavy trading volume, so the investigation.