Driven Brands Faces Expanded Securities Lawsuit Amid Financial Restatements

Hagens Berman law firm says class period expanded as company delays annual filing due to accounting issues

Apr. 14, 2026 at 12:36am by

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A minimalist, photorealistic studio still-life featuring a stack of financial reports and accounting ledgers in muted tones, conceptually representing the corporate transparency issues at the heart of the Driven Brands securities lawsuit.The Driven Brands securities lawsuit alleges a breakdown in corporate financial oversight and transparency.San Francisco Today

A securities class action lawsuit has been filed against Driven Brands Holdings Inc. (NASDAQ: DRVN) and its executives, expanding the initial class period as the company faces pending financial restatements and a delay in filing its annual report. The lawsuit alleges Driven Brands misled investors about its financial health by issuing misstated financial statements from 2023 through the first three quarters of 2025.

Why it matters

The case highlights growing concerns around corporate transparency and oversight, as Driven Brands' accounting issues and delayed filings have wiped out over $900 million in market value. The expanded lawsuit and pending restatements raise questions about the severity of the company's improper accounting practices and the potential impact on investors.

The details

The initial and related lawsuit follow Driven Brands' announcements in February 2026 that investors should no longer rely on previously filed financial statements, which required restatement, and that the company would not timely file its annual report for 2025 due to the pending restatements. Driven Brands cited issues with lease adjustments, cash adjustments, expense classification, and inappropriately recognized revenue in its accounting.

  • On February 25, 2026, Driven Brands admitted its previously filed financial statements were materially misstated and would be restated.
  • On February 26, 2026, Driven Brands announced it would not timely file its 2025 annual report due to the pending restatements and revealed its internal controls over financial reporting were not effective and materially weak.

The players

Driven Brands Holdings Inc.

A publicly traded automotive services company that owns several car care brands, including MAACO, Meineke, and Carstar.

Hagens Berman

A national shareholder rights law firm that has filed the securities class action lawsuit 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

The lawsuit has a May 8, 2026 lead plaintiff deadline, and Hagens Berman is encouraging investors with substantial losses to come forward. The firm is also seeking information from whistleblowers who may be able to assist in the investigation.

The takeaway

The Driven Brands case highlights the importance of accurate financial reporting and effective internal controls, as the company's accounting issues have had a significant impact on investor confidence and the company's market value. The expanded lawsuit and pending restatements underscore the need for greater corporate transparency and accountability.