Driven Brands (US:DRVN) Businesswire·2026-03-12 18:09Core Viewpoint - A securities fraud class action lawsuit has been filed against Driven Brands Holdings Inc. (DRVN) on behalf of investors who acquired shares between May 9, 2023, and February 24, 2026, due to material errors in the company's financial statements [1] Group 1: Lawsuit Details - The lawsuit alleges that Driven Brands made materially false and misleading statements and failed to disclose adverse facts about its business and operations during the class period [1] - Investors have until May 8, 2026, to file a lead plaintiff motion in this class action lawsuit [1] Group 2: Financial Misstatements - On February 25, 2025, Driven Brands disclosed material errors in its consolidated financial statements dating back to 2023, which required restatement [1] - The company identified at least ten categories of errors, including inappropriate revenue recognition, unreconciled cash account differences, and overstatement of expenses [1] - The stock price fell by $5.01, or 30.2%, closing at $11.60 per share on February 25, 2026, following the announcement of these errors [1] Group 3: Specific Errors Identified - Errors included issues with lease recording impacting right of use assets and liabilities, inaccuracies in cash balances and operating cash flows, and misclassification of expenses [1] - Additional errors were related to income tax provisions, supply revenue, fixed assets, and revenue recognition in the ATI business [1]