Driven Brands Class Action Lawsuit - DRVN

Introduction to Driven Brands Holdings Inc. (DRVN) Securities Class Action Lawsuit

A securities fraud class action has been filed against Driven Brands Holdings Inc. (NASDAQ: DRVN) and certain of its officers and directors, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all persons who purchased or otherwise acquired Driven Brands Holdings Inc. common stock between May 9, 2023, and February 24, 2026. Investors allege that the company misrepresented its financial condition and the effectiveness of its internal controls through a series of inaccurate financial reports, including its consolidated financial statements, filed with the Securities and Exchange Commission.

On February 25, 2026, in a Form 8-K Current Report, the company revealed that material errors permeated nearly three years of financial statements, requiring comprehensive restatements across fiscal years 2023 and 2024 and all quarterly and year-to-date periods through September 2025. The stock declined (approximately 39.8%) on the disclosure as investors learned the financial statements they had relied upon required comprehensive restatements.

“Most DRVN shareholders never file or join the class action, which means they miss out on potential recovery funds,” said Attorney Joseph Levi.

Driven Brands Holdings Inc. (DRVN) Securities Lawsuit Case Details

Case Name: Clark v. Driven Brands Holdings Inc.

Case No.: 1:26-cv-01902

Jurisdiction: U.S. District Court, Southern District of New York

Filed on: March 9, 2026

Driven Brands Holdings Inc. (DRVN) Company Profile

Driven Brands Holdings Inc. is the largest automotive services company in North America, publicly traded on the NASDAQ as DRVN, operating approximately 4,900 locations across more than 15 countries. The company provides automotive aftermarket maintenance, car wash, collision, and glass services through major brands including Take 5 Oil Change, Meineke Car Care Centers, Maaco, and Auto Glass Now.

Driven Brands Holdings Inc. (DRVN) Securities Lawsuit Class Period

May 9, 2023-February 24, 2026, inclusive.

Investors who purchased or otherwise acquired Driven Brands Holdings Inc. common stock traded on NASDAQ: DRVN during the Class Period may be eligible to join the Driven Brands Holdings Inc. (DRVN) class action lawsuit.

Allegations in the Driven Brands Holdings Inc. (DRVN) Securities Class Action Lawsuit

The complaint targets Driven Brands Holdings Inc. and five executives who allegedly misled investors through material misstatements and omissions about the company's financial performance and internal controls throughout nearly three years of operations. Named as defendants are Jonathan Fitzpatrick, who served as Chief Executive Officer from 2012 through May 9, 2025; Michael F. Diamond, Chief Financial Officer from August 9, 2024, through the end of the class period; Michael Beland, Senior Vice President and Chief Accounting Officer from July 2021 to January 3, 2025; Daniel Rivera, who became President and Chief Executive Officer on May 9, 2025; and Rebecca Fondell, who assumed the role of Senior Vice President and Chief Accounting Officer on the same date.

According to the complaint, the company filed a series of condensed consolidated quarterly reports with the Securities and Exchange Commission that painted a picture of consistent revenue growth driven by same-store sales and net store expansion. On May 9, 2023, Fitzpatrick and Beland reported revenue increased 20% to $562 million in the first quarter. Three months later, on August 9, 2023, they announced revenue climbed 19% to $607 million in the second quarter. By November 9, 2023, they disclosed third-quarter revenue rose 12% to $581 million, continuing the narrative of steady growth. As late as November 5, 2025, Rivera and Fondell certified that the company's disclosure controls and procedures were designed effectively and would provide a reasonable level of assurance, while failing to disclose material weaknesses in internal controls over financial reporting.

The complaint alleges that Driven Brands later disclosed multiple accounting issues affecting its financial reporting, including lease accounting, cash reconciliation, expense classification, income tax provision, supply and other revenue recognition, fixed assets, cloud computing costs, lease cash application, and other balance-sheet and income-statement misclassifications. The complaint further alleges that the company identified improperly recognized revenue in its ATI business, primarily related to fiscal year 2025.

The Truth Emerges

On February 25, 2026, Driven Brands Holdings Inc. filed a Current Report on Form 8-K under the Securities Exchange Act revealing that two days earlier, on February 23, 2026, the Audit Committee of the Board of Directors had concluded there were material errors in the company's previously issued consolidated financial statements for fiscal years 2023 and 2024 and quarterly periods through September 27, 2025.

The company announced that its consolidated financial statements for each of the quarterly and year-to-date periods within fiscal year 2024 as well as the quarterly and year-to-date periods through September 27, 2025, should not be relied upon, constituting a multi-year financial restatement, and delayed filing its 2025 Form 10-K. Management admitted it had identified material weaknesses in the company's internal control over financial reporting, concluding that internal controls and disclosure controls were not effective as of December 27, 2025.

These revelations contradicted nearly three years of financial reporting and internal control certifications made in SEC filings. Every quarterly revenue growth figure reported from May 2023 through November 2025 was now suspect, and the assurances about effective disclosure controls that Rivera and Fondell had provided just months earlier proved unfounded.

Market Reaction

The market reacted swiftly to the disclosure. On February 25, 2026, Driven Brands Holdings Inc.'s stock opened at $9.99 per share for DRVN on the NASDAQ, down from its closing price of $16.61 on February 24, 2026, a decline of $6.62 (approximately 39.8%). That single-day drop reflected investor’s reaction to the company’s disclosure that its financial statements for 2023, 2024, and quarterly periods in 2025 should not be relied upon and would be restated, triggering investor losses and securities litigation.

Next Steps

● The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

● The Court will then consider motion for class certification.

● The Court will later consider a Motion to Dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

Check Eligibility

✓ Free case evaluation
✓ No cost or obligation
✓ See if you qualify

First Name *

Last Name *

Email *

Phone

Estimated Loss

Number of Shares

Purchase Date

Full Name

Submitting this form does not create an attorney-client relationship. Your information is confidential.

Or contact us directly:

(212) 363-7500 [email protected]

Never Miss Another Deadline

Choose your preferred way to stay informed of new case launches and settlement deadlines.

Scan the QR code or click the button to join.

Join on WhatsApp

First Name *

Last Name *

Email *

Full Name

Submitting this form does not create an attorney-client relationship. Your information is confidential.

[email protected] (212) 363-7500

Certification of Plaintiff Pursuant to Federal Securities Laws

I, duly certify and say, as to the claims asserted under the federal securities laws, that:

I have reviewed a complaint filed in the action.
I did not purchase the security that is the subject of this action at the direction of plaintiff's counsel or in order to participate in this action.
I am willing to serve as a representative party on behalf of the class, including providing testimony at deposition and trial, if necessary.
My transaction(s) in Driven Brands Holdings Inc. which are the subject of this litigation during the class period set forth in the complaint are set forth in the chart attached hereto.
Within the last 3 years,
I have not sought to serve nor have I served as a class representative in any federal securities fraud case. I have sought to serve as a class representative in
I will not accept any payment for serving as a representative party on behalf of the class beyond the Plaintiff's pro rata share of any recovery, except as ordered or approved by the court, including any award for reasonable costs and expenses (including lost wages) directly relating to the representation of the class.

Are you US Citizen?

Yes. I certify under penalty of perjury that the foregoing is true and correct. Executed this No. I certify under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed this

Clear

Signed pursuant to California Civil Code Section 1633.1, et seq. - and the Uniform Electronic Transactions Act as adopted by the various states and territories of the United States.

By your signature above, you confirm that have retained Levi & Korsinsky, LLP to represent you and the shareholder class as a lead plaintiff in the pending class action against Driven Brands Holdings Inc. This representation will be on a contingency basis, meaning that Levi & Korsinsky will advance all expenses in the litigation and will only seek compensation and/or reimbursement of expenses if the firm obtains a recovery. Regardless of the result, we will never ask you to directly pay for any attorneys’ fees, expenses, or costs. Should we obtain a favorable result, we may ask the court to award us compensation and reimbursement of expenses to be paid by the defendants or as a portion of any class recovery. In exchange for our representation, you agree to cooperate as our client by providing, for example, relevant documents and deposition testimony, if necessary. During the course of this litigation, we may employ and/or work with other law firms, experts, and third-parties to successfully prosecute this action. If you are not appointed as the lead plaintiff or Levi & Korsinsky is not appointed as lead counsel, we will notify you of such decision at which time this representation will end unless otherwise extended by you and the firm. We look forward to working with you towards a successful resolution of this action.

I have reviewed the complaint linked in paragraph 1