Jason Cap, Individually and on Behalf of All Others Similarly Situated v. CarMax, Inc., et al.

Summary

The United States District Court for the District of Maryland grants the motion of the Excavators Union Local 231 Pension Fund and City of Birmingham Retirement and Relief System to be appointed lead plaintiff in a putative securities class action against CarMax, Inc. and its officers. The court concludes that the Pension Funds have the largest financial interest, satisfy the requirements of Federal Rule of Civil Procedure 23, and are presumptively the most adequate plaintiff under the Private Securities Litigation Reform Act. The court states that a separate order will address the appointment of lead counsel.

Holdings

1. The Pension Funds were the most adequate plaintiff because they timely moved in response to notice of the action and had the largest financial interest in the relief sought by the putative class.
2. The Pension Funds made a prima facie showing of typicality because their claims arose from the same alleged misconduct as the claims of the putative class and relied on similar legal theories.
3. The Pension Funds made a prima facie showing of adequacy because their interests aligned with those of the putative class, they had no apparent conflicts, and they secured adequate counsel.
4. No class member rebutted the presumption that the Pension Funds were the most adequate plaintiff.

Questions Presented

1. Which movant was the most adequate plaintiff under the Private Securities Litigation Reform Act?
2. Whether the Excavators Union Local 231 Pension Fund and City of Birmingham Retirement and Relief System satisfied the typicality and adequacy requirements of Federal Rule of Civil Procedure 23.
3. Whether any class member rebutted the statutory presumption favoring the Pension Funds as lead plaintiff.

Disposition

other