Driven Brands (US:DRVN) Globenewswire·2026-03-23 11:45Core 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][4]. Summary by Sections Class Action Lawsuit Details - The class action lawsuit is titled Clark v. Driven Brands Holdings Inc., and it involves purchasers of Driven Brands common stock from May 9, 2023, to February 24, 2026 [1]. - Investors have until May 8, 2026, to seek appointment as lead plaintiff in the lawsuit [1]. Allegations Against Driven Brands - The lawsuit alleges that Driven Brands made false or misleading statements and failed to disclose critical errors in financial reporting, including: - Errors in lease recording affecting right of use assets and liabilities as of December 28, 2024, and September 27, 2025 [3]. - Misstatements in cash balances and operating cash flows, leading to overstatements of cash and revenue for fiscal years 2023 and 2024 [3]. - Improper presentation of supply and other expenses as company-operated store expenses for fiscal years 2023 and 2024 [3]. - Additional errors related to income tax provision, revenue recognition, and misclassifications in financial statements [3]. Impact of Financial Misstatements - 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 any investor who purchased Driven Brands common stock during the class period to seek lead plaintiff status, which involves directing the lawsuit on behalf of all class members [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].