Driven Brands (US:DRVN) Globenewswire·2026-03-23 18:58Core Viewpoint - A securities fraud class action lawsuit has been filed against Driven Brands Holdings Inc. for allegedly making materially false and misleading statements regarding its financial reporting and internal controls [2][4]. Group 1: Lawsuit Details - The lawsuit is filed on behalf of investors who purchased Driven Brands common stock between May 9, 2023, and February 24, 2026 [2][7]. - Investors have until May 8, 2026, to file for lead plaintiff status [2][8]. - The case is titled Clark v. Driven Brands Holdings Inc., et al, and is being heard in the United States District Court for the Southern District of New York [2]. Group 2: Allegations - The complaint alleges that Driven Brands misrepresented and failed to disclose significant errors in its financial statements, including issues with lease recording and cash flow reporting [4]. - Specific allegations include overstatements of cash and revenue, and misclassification of expenses in fiscal years 2023 and 2024 [4]. - The company also identified errors related to income tax provisions and revenue recognition, particularly in its ATI business for fiscal year 2025 [4]. Group 3: Stock Impact - Following the disclosure of the need to restate financial statements due to accounting errors, Driven Brands' stock price dropped by $5.01, nearly 40%, from $16.61 to $11.60 per share on February 25, 2026 [5].