Driven Brands (US:DRVN) Businesswire·2026-03-06 14:19Core Viewpoint - Faruqi & Faruqi, LLP has initiated an investigation into Driven Brands Holdings Inc. following a significant drop in its stock price due to delayed financial reporting and material errors in previously issued financial statements [1]. Financial Performance - Driven Brands shares fell over 25% on February 25, 2026, after the company announced a delay in its fourth-quarter release due to material errors in financial statements for fiscal years 2023 and 2024 [1]. - The company disclosed that its financial statements should not be relied upon and require restatement, indicating serious discrepancies in its financial reporting [1]. Errors and Issues - The identified errors include lease recording issues affecting right of use assets and liabilities, cash account discrepancies leading to overstatements of cash and revenue, and overstated company-operated store expenses for fiscal years 2023 and 2024 [1]. - Driven Brands also reported material weaknesses in internal control over financial reporting, raising concerns about the reliability of its financial disclosures [1].