A consumer protection lawsuit against CarMax has been resolved, resolving in a pretrial agreement requiring the corporation to pay $1.1 million in legal fees and penalties, and implement new policies to rectify shortcomings. The lawsuit was filed by the Riverside County District Attorney’s Office, along with prosecuting agencies in Los Angeles, San Francisco, Santa Clara, Sonoma and Ventura counties. The issue arose after multiple consumer complaints alleging CarMax dealerships failed to properly handle registration transfers and ownership filings related to used car sales. Under the settlement, CarMax agreed to implement enhanced business practices, including placing a sales hold on vehicles when dealership does not have possession of the title, completing necessary smog checks or VIN verifications prior to sale.