Driven Brands Investors Seek Lead Plaintiff Role in Class Action Lawsuit

Lawsuit alleges accounting errors in Driven Brands' financial statements from 2023-2025

Mar. 19, 2026 at 2:48am

Got story updates? Submit your updates here. ›

Investors who purchased Driven Brands Holdings Inc. (NASDAQ: DRVN) common stock between May 9, 2023 and February 24, 2026 have until May 8, 2026 to seek appointment as lead plaintiff in a class action lawsuit against the company. The lawsuit alleges that Driven Brands made false and/or misleading statements about errors in its financial reporting, including issues with lease accounting, cash balances, expenses, and revenue recognition.

Why it matters

The lawsuit highlights the importance of accurate financial reporting for publicly traded companies. Investors rely on this information to make informed decisions, and any material misstatements can lead to significant losses. The case also demonstrates the role of class action lawsuits in holding companies accountable for alleged misconduct.

The details

The Driven Brands class action lawsuit, captioned Clark v. Driven Brands Holdings Inc., No. 26-cv-01902 (S.D.N.Y.), alleges that Driven Brands and certain of its top executives violated the Securities Exchange Act of 1934. The lawsuit claims the company made false and/or misleading statements about errors in its financial reporting, including issues with lease accounting, cash balances, expenses, and revenue recognition. On February 25, 2026, Driven Brands disclosed that its Audit Committee had concluded there were material errors in its previously issued financial statements for fiscal years 2023 and 2024, as well as quarterly and year-to-date periods in 2024 and 2025. This news caused the company's stock price to fall nearly 40%.

  • On February 25, 2026, Driven Brands disclosed the material errors in its previously issued financial statements.
  • Investors have until May 8, 2026 to seek appointment as lead plaintiff in the class action lawsuit.

The players

Driven Brands Holdings Inc.

An automotive services company that is the defendant in the class action lawsuit.

Robbins Geller Rudman & Dowd LLP

The law firm representing the plaintiffs in the class action lawsuit against Driven Brands.

Got photos? Submit your photos here. ›

What’s next

The judge in the case will decide on May 8, 2026 whether to allow investors to serve as the lead plaintiff in the class action lawsuit against Driven Brands.

The takeaway

This case highlights the importance of accurate financial reporting for publicly traded companies and the role of class action lawsuits in holding companies accountable for alleged misconduct that can lead to significant investor losses.