Driven Brands Faces Securities Class Action Over Accounting Errors

Lawsuit alleges pervasive accounting issues and internal control failures at the auto parts retailer spanning 2023-2025

Apr. 2, 2026 at 11:00pm by Ben Kaplan

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A highly detailed, photorealistic studio photograph of a shiny chrome car part or tool floating against a plain white background, using dramatic lighting and shadows to convey a sense of corporate finance and accounting.A polished automotive component symbolizes the financial transparency issues at the heart of the Driven Brands securities lawsuit.San Francisco Today

A securities class action lawsuit has been filed against Driven Brands Holdings Inc. (NASDAQ: DRVN) and its executives, alleging material accounting errors and internal control failures in the company's financial statements over the past two fiscal years. The lawsuit follows Driven Brands' disclosure that its 2023 and 2024 financial results can no longer be relied upon, leading to a nearly 40% single-day stock price crash.

Why it matters

The Driven Brands case highlights the importance of accurate financial reporting and strong internal controls, especially for publicly traded companies. The alleged accounting issues and lack of transparency raise concerns about corporate oversight and the reliability of the company's financial health disclosures to investors.

The details

The lawsuit, filed by law firm Hagens Berman, alleges that Driven Brands violated federal securities laws by issuing materially false and misleading financial statements. The company admitted to 'material weaknesses' in its internal controls over financial reporting, including problems with lease accounting, unreconciled cash accounts, and misclassification of expenses. Driven Brands was also forced to delay its 2025 Form 10-K filing, leaving investors in the dark about the company's current financial status.

  • On February 25, 2026, Driven Brands revealed the material accounting errors in its 2023 and 2024 financial statements, as well as all quarterly reports through September 2025.
  • The securities class action lawsuit was filed on April 2, 2026 in the U.S. District Court for the Southern District of New York.
  • Investors have until May 8, 2026 to seek to be appointed as lead plaintiff in the case.

The players

Driven Brands Holdings Inc.

A publicly traded automotive parts and services company that owns several major retail brands, including Maaco, Meineke, and CARSTAR.

Hagens Berman

A national shareholder rights law firm that filed the securities class action lawsuit against Driven Brands.

Reed Kathrein

The Hagens Berman partner leading the investigation into the claims against Driven Brands.

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What they’re saying

“The Driven Brands case alleges a fundamental failure of corporate oversight and financial transparency.”

— Reed Kathrein, Hagens Berman partner

What’s next

Investors who purchased Driven Brands stock during the class period from May 9, 2023 to February 24, 2026 have until May 8, 2026 to seek to be appointed as lead plaintiff in the case.

The takeaway

The Driven Brands case highlights the need for public companies to maintain robust internal controls and accurate financial reporting to ensure transparency and accountability to investors. The alleged accounting issues and lack of disclosure raise concerns about corporate oversight that could have broader implications for the auto parts retail industry.