INVESTOR ALERT: Driven Brands Holdings Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit, Robbins Geller Rudman & Dowd LLP Announces

Core Viewpoint - Driven Brands Holdings Inc. is facing a class action lawsuit due to alleged misleading financial statements and errors in financial reporting, which have resulted in substantial losses for investors [1][3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Clark v. Driven Brands Holdings Inc. and covers the period from May 9, 2023, to February 24, 2026 [1]. - Investors who purchased Driven Brands common stock during the class period have until May 8, 2026, to seek appointment as lead plaintiff [1]. - The lawsuit alleges violations of the Securities Exchange Act of 1934 by Driven Brands and certain executives [1][3]. Group 2: Allegations Against Driven Brands - The lawsuit claims that Driven Brands made false or misleading statements regarding lease recording errors, impacting right of use assets and liabilities [3]. - It also alleges errors in reporting cash balances and operating cash flows, leading to overstatements of cash and revenue for fiscal years 2023 and 2024 [3]. - Additional allegations include misclassification of expenses and improper revenue recognition related to the ATI business for fiscal year 2025 [3][4]. Group 3: Impact of the 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 stock price [4]. - The Audit Committee concluded that the financial statements should not be relied upon and required restatement [4]. Group 4: Legal Representation - Robbins Geller Rudman & Dowd LLP is representing investors in this class action lawsuit and is recognized as a leading law firm in securities fraud litigation [6]. - The firm has a strong track record, recovering over $916 million for investors in 2025 alone [6].