INVESTOR ALERT: Driven Brands Holdings Inc. Investors with Substantial Losses Have Opportunity to Lead the Driven Brands Class Action Lawsuit – RGRD Law

Core Viewpoint - Driven Brands Holdings Inc. is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with significant financial misstatements impacting its stock value [1][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Clark v. Driven Brands Holdings Inc., and it includes purchasers of Driven Brands common stock from May 9, 2023, to February 24, 2026 [1]. - Investors have until May 8, 2026, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit alleges that Driven Brands and certain executives made false or misleading statements and failed to disclose critical financial errors [3]. Group 2: Allegations of Financial Misstatements - Allegations include errors in lease recording affecting right of use assets and liabilities as of December 28, 2024, and September 27, 2025 [3]. - There were inaccuracies in reporting cash balances and operating cash flows, leading to overstatements of cash and revenue for fiscal years 2023 and 2024 [3]. - Misclassification of supply and other expenses as company-operated store expenses was also noted for fiscal years 2023 and 2024 [3]. - Additional errors were identified related to income tax provisions, revenue recognition, and other financial misclassifications [3]. Group 3: Impact of Financial Disclosure - On February 25, 2026, Driven Brands disclosed material errors in its previously issued financial statements for fiscal years 2023 and 2024, stating that these statements should not be relied upon [4]. - Following this disclosure, Driven Brands' stock price fell nearly 40% [4]. Group 4: Lead Plaintiff Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Driven Brands common stock during the class period to seek lead plaintiff status [5]. - The lead plaintiff represents the interests of all class members and can select a law firm for litigation [5]. Group 5: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder rights litigation, having recovered over $916 million for investors in 2025 [6]. - The firm has a strong track record, recovering $8.4 billion for investors over the past five years [6].