Driven Brands Holdings Inc.

Background

Company Name	Driven Brands Holdings Inc.
Stock Symbol	DRVN
Class Period	May 09, 2023 to February 24, 2026
Lead Plaintiff Motion Deadline	May 08, 2026

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If you suffered a loss on your Driven Brands Holdings Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filling out this form mean you have joined any lawsuit.

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Shares Purchased

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Additional Comments

Background

On February 25, 2025, Driven Brands disclosed “material errors in [the Company’s] previously issued consolidated financial statements” dating back to 2023. As such, its “financial statements should not be relied upon and required restatement.”

The Company disclosed errors which included: “inappropriately recognized revenue,” “unreconciled differences for cash accounts,” overstatement of expenses, and issues with the “completeness and accuracy of recording leases.” The Company noted it “may identify further material errors.”

On this news, Driven Brands’ stock price fell $5.01, or 30.2%, to close at $11.60 per share on February 25, 2026, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) there were errors relating to the recording of leases which primarily impacted the right of use assets and right of use liabilities recorded in the consolidated balance sheet as of December 28, 2024, and September 27, 2025; (2) there were errors in reporting opening and ending cash balances and operating cash flows, which resulted in overstatements of cash and revenue and understatement of selling, general and administrative expense in consolidated statement of operations for fiscal years 2023 and 2024; (3) supply and other expenses were improperly presented as company-operated store expenses in fiscal years 2023 and 2024; (4) other errors were identified relating to income tax provision, supply and other revenue, fixed assets, cloud computing, lease cash applications, and balance sheet and income statement misclassifications; (6) the Company improperly recognized revenue in Driven Brands’ ATI business; and (7) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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