Driven Brands (US:DRVN) Prnewswire·2026-03-11 12:30Core 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][3][4]. Summary by Sections Class Action Lawsuit Details - The class action lawsuit, titled Clark v. Driven Brands Holdings Inc., allows purchasers of Driven Brands common stock from May 9, 2023, to February 24, 2026, to seek lead plaintiff status by May 8, 2026 [1]. - The lawsuit alleges that Driven Brands and certain executives made false or misleading statements and failed to disclose critical financial errors [3]. Allegations of Financial Misstatements - Key allegations include: - Errors in lease recording affecting right of use assets and liabilities as of December 28, 2024, and September 27, 2025 [3]. - Misreporting of cash balances and operating cash flows, leading to overstatements of cash and revenue, and understatement of expenses for fiscal years 2023 and 2024 [3]. - Improper presentation of supply and other expenses as company-operated store expenses during the same fiscal years [3]. - Additional errors related to income tax provisions, revenue recognition, and misclassifications in financial statements [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, leading to a nearly 40% drop in its stock price [4]. Lead Plaintiff Process - The Private Securities Litigation Reform Act of 1995 allows investors who purchased Driven Brands stock during the class period to seek lead plaintiff status, representing the interests of the class [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 alone [6].