Driven Brands (US:DRVN) Globenewswire·2026-03-30 10:08Core Viewpoint - A class action lawsuit has been filed against Driven Brands Holdings Inc. for securities fraud due to significant accounting errors and internal control failures, resulting in a nearly 40% drop in stock price [1][4][10] Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Southern District of New York, titled Clark v. Driven Brands Holdings Inc., et al., 1:26-cv-01902 [4] - Investors have until May 8, 2026, to request to be appointed as lead plaintiffs in the case [4][10] - The complaint alleges violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [4] Group 2: Reasons for the Lawsuit - Driven Brands, an automotive aftermarket services company, previously assured investors of accurate financial reporting and effective internal controls [5] - Allegations indicate that these assurances were materially false due to pervasive accounting errors, including lease accounting issues and improperly recognized revenue, spanning fiscal years 2023 through 2025 [6] Group 3: Stock Performance - On February 25, 2026, Driven Brands announced it would restate financial statements for fiscal years 2023 and 2024, along with quarterly and year-to-date financials for 2025, due to identified accounting errors [7] - Following this announcement, the stock price plummeted from $16.61 per share on February 24, 2026, to $9.99 per share on February 25, 2026, marking a decline of nearly 40% [8][10]