Driven Brands (US:DRVN) Prnewswire·2026-03-06 20:13Core Insights - Driven Brands Holdings Inc. (NASDAQ: DRVN) experienced a 30% drop in share price, resulting in a loss of over $800 million in market capitalization due to improper accounting practices and delayed financial reporting [1][1][1] Financial Reporting Issues - The company admitted to improper accounting dating back to fiscal year 2023, leading to the conclusion that its previously issued annual financial statements for 2023 and 2024 should no longer be relied upon [1][1][1] - Driven Brands also stated that financial statements for several quarterly periods in fiscal year 2024 and for the quarters ending September 27, 2025, June 28, 2025, and March 29, 2025, are unreliable [1][1][1] - The company plans to restate these financial statements to correct revenue overstatements and expense understatements [1][1][1] Internal Control Weaknesses - Driven Brands disclosed "material weaknesses" in its internal control over financial reporting, indicating that its controls were ineffective as of December 27, 2025 [1][1][1] - The determination of these weaknesses has prevented the timely filing of its annual financial statements for the year ended December 27, 2025 [1][1][1] Legal Investigation - Hagens Berman, a national shareholder rights law firm, is investigating whether Driven Brands violated federal securities laws, particularly regarding the reliability of its financial statements [1][1][1] - The firm is urging investors who suffered significant losses to come forward and discuss their rights [1][1][1]