The Hartford, Conn., law firm Izard Nobel LLP has filed a lawsuit in the Eastern District of Virginia alleging that CarMax and certain of its officers and directors issued materially false statements. 

Specifically, the lawsuit contends that CarMax failed to disclose that it was not positioned to meet its sales goals or earnings objectives in fiscal 2009, that the company had completed a refinancing of a warehouse facility which had materially increased the company's funding costs, and that management had no reasonable basis for their revenues and earnings guidance for fiscal 2009.

This lawsuit comes on the heels of an announcement by an Atlanta firm last month that it was investigating the possibility that CarMax had misrepresented its financial condition prior to announcing a 55 percent decrease in first quarter earnings.