INVESTOR ALERT: Driven Brands Holdings Inc. Investors with Substantial Losses Have Opportunity to Lead 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 investors [1][3][4]. Group 1: Class Action Details - The class action lawsuit is titled Clark v. Driven Brands Holdings Inc., and it includes claims against the company and certain executives for making false or misleading statements during the class period from May 9, 2023, to February 24, 2026 [1][3]. - Investors who suffered substantial losses during the class period have until May 8, 2026, to seek appointment as lead plaintiff [1][5]. Group 2: Allegations of Financial Misstatements - The lawsuit alleges that Driven Brands made errors in recording leases, which affected right of use assets and liabilities on the balance sheet as of December 28, 2024, and September 27, 2025 [3]. - There were also reported inaccuracies in cash balances and operating cash flows, leading to overstatements of cash and revenue, and understatements of selling, general, and administrative expenses for fiscal years 2023 and 2024 [3]. - Additional allegations include misclassification of expenses and errors related to income tax provisions and revenue recognition, particularly in the ATI business for fiscal year 2025 [3][4]. Group 3: Impact of 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 the stock price [4].