The lawsuit with CarMax is regarding the disclosure of open safety recalls on used vehicles as well as class action lawsuits against Carmax that alleges that CarMax falsely advertises performing a 125+ point inspection on their vehicles.
A class action lawsuit alleges that CarMax has misled consumers by falsely claiming to perform a 125+ point inspection on very car they sell.
The key lawsuits and allegations that CarMax is facing includes a settlement with 36 states, which includes the state of Pennsylvania, which involved CarMax paying $1 million and agreeing to disclose open safety recalls on used vehicles before sale.
This settlement stemmed from investigations by state attorneys general who accused CarMax of failing to inform their customers about any necessary recall repairs.
And a class action lawsuit that was filed in the state of California also claims that CarMax misrepresented the extent of their 125+ point inspection on used vehicles.
The lawsuit also alleges that CarMax did not perform the advertised inspection on the vehicles even though they claimed they did.
And CarMax also faced another lawsuit for allegedly selling vehicles which did not meet emissions standards and for fraudulently completing title certificates.
And even one lawsuit on CarMax includes claims of breaches of express or implied warranties, intentional and negligent misrepresentation, breach of contract, unfair competition and also violations of the Consumer Legal Remedies Act.
CarMax has settled with several states regarding the failure to disclose open safety recalls and investigations into CarMax's business practices have also led to settlements and changes in how they operate and some lawsuits against CarMax are also still ongoing or in the process of being settled.