Driven Brands Holdings Inc. (NASDAQ: DRVN) Securities Fraud Class Action

The Driven Brands Holdings Inc. securities fraud class action lawsuit was filed on behalf of those who purchased or otherwise acquired Driven Brands Holdings Inc. (“Driven Brands”) (NASDAQ: DRVN) common stock between May 3, 2023, and February 24, 2026, inclusive (the “Class Period”). Captioned City of Hollywood Police Officers’ Retirement System v. Driven Brands Holdings, Inc., et al, Case No. 26-cv-00283 (W.D.N.C.), the Driven Brands class action lawsuit alleges that Driven Brands and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.

If you experienced losses as a result of your Driven Brands investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at [email protected]. 

COMPLAINT ALLEGATION SUMMARY:
Driven Brands is an automotive aftermarket services company that owns, operates, and franchises vehicle maintenance, repair, collision, glass, and car wash brands.

The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about Driven Brands’ business and operations.  Specifically, Defendants misrepresented and/or failed to disclose that: (1) there were errors relating to the recording of leases which primarily impacted Driven Brands’ right of use assets and right of use liabilities recorded in the company’s consolidated balance sheet as of December 28, 2024, and September 27, 2025; (2) there were errors in Driven Brands’ 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 expenses in consolidated statement of operations for fiscal years 2023 and 2024; (3) Driven Brands’ supply and other expenses were improperly presented as company-operated store expenses in fiscal years 2023 and 2024; (4) Driven Brands identified other errors relating to the company’s income tax provision, supply and other revenue, fixed assets, cloud computing, lease cash applications, balance sheet and income statement misclassifications, and improperly recognized revenue in Driven Brands’ ATI business primarily related to fiscal year 2025; and (5) as a result of the foregoing, Defendants statements about the company’s business, operations, and prospects were materially false and misleading at all relevant times.

WHY DID DRVN’S STOCK DROP?
On February 25, 2026, Driven Brands disclosed that the company would restate its financial statements for fiscal years 2023 and 2024, as well as quarterly and year-to-date financials for 2025, after identifying numerous material accounting errors. Driven Brands further revealed material weaknesses in its internal controls over financial reporting and delayed the filing of its 2025 Form 10-K. On this news, Driven Brands’ stock price fell $5.01 per share, or nearly 40%, from a close of $16.61 per share on February 24, 2026, to close at $11.60 per share on February 25, 2026.

If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.