Driven Brands (US:DRVN) Globenewswire·2026-03-11 23:10Core Viewpoint - A class action has been filed against Driven Brands Holdings Inc. due to material errors in its previously issued consolidated financial statements, impacting its financial reporting for fiscal years 2023 and 2024 [1][2][3]. Company Overview - Driven Brands Holdings Inc. is the largest automotive services company in North America, operating approximately 4,900 locations across more than 15 countries [1]. Allegations and Financial Reporting Issues - The complaint alleges that Driven Brands failed to disclose several material errors, including: - Errors in lease recording affecting right of use assets and liabilities as of December 28, 2024, and September 27, 2025 [2]. - Overstatements of cash and revenue, and understatement of selling, general and administrative expenses for fiscal years 2023 and 2024 [2]. - Misclassification of supply and other expenses as company-operated store expenses for fiscal years 2023 and 2024 [2]. - Additional errors related to income tax provision, supply and other revenue, fixed assets, cloud computing, lease cash applications, and revenue recognition in the ATI business for fiscal year 2025 [2]. Stock Price Impact - Following the announcement of the financial reporting errors, Driven Brands' stock price fell nearly 40%, from a close of $16.61 on February 24, 2026, to an opening price of $9.99 on February 25, 2026 [4]. Class Action Participation - Shareholders may be eligible to participate in the class action against Driven Brands, with a deadline to submit papers to the court by May 8, 2026, for those wishing to serve as lead plaintiff [4].