Driven Brands Faces Expanded Securities Lawsuit Amid Pending Restatements

Investors with losses encouraged to contact law firm Hagens Berman before May 8 deadline

Apr. 16, 2026 at 5:40pm by

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A high-end, photorealistic studio still-life featuring a stack of financial reports and a broken calculator on a clean, monochromatic background, conceptually representing the breakdown of corporate financial oversight.The collapse of financial transparency at Driven Brands has left investors in the dark about the severity of the company's accounting issues.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 to include investors who purchased the company's stock between May 3, 2023 and February 24, 2026. The lawsuit follows Driven Brands' announcements that previously filed financial statements were materially misstated and would require restatement, and that the company would not timely file its 2025 annual report.

Why it matters

The case alleges Driven Brands misled investors about its financial health by issuing misstated financial statements over several years. The company's disclosures in February 2026 caused its stock price to plummet, wiping out over $900 million in market value. The lawsuit highlights concerns about corporate oversight and financial transparency at the auto repair and maintenance company.

The details

The initial and related class action lawsuit accuse Driven Brands and its executives of violating federal securities laws by issuing misleading financial statements from fiscal year 2023 through the first three quarters of fiscal year 2025. On February 25, 2026, Driven Brands admitted the prior financial statements were materially misstated and would require restatement due to improper accounting in areas like lease adjustments, cash adjustments, and expense classification. The company also revealed on February 26 that it would not timely file its 2025 annual report due to the pending restatements and that its internal controls over financial reporting were not effective.

  • On February 25, 2026, Driven Brands announced its prior financial statements were materially misstated and would require restatement.
  • On February 26, 2026, Driven Brands said it would not timely file its 2025 annual report due to the pending restatements and that its internal controls were not effective.

The players

Driven Brands Holdings Inc.

A publicly traded automotive repair and maintenance company.

Hagens Berman

A national shareholder rights law firm leading the investigation and litigation 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

Hagens Berman continues to investigate the legal claims and encourages investors with substantial losses to submit their information before the May 8, 2026 lead plaintiff deadline. The firm also encourages anyone with knowledge that could assist the investigation to contact the firm's attorneys.

The takeaway

This case highlights the importance of financial transparency and effective internal controls at public companies. Investors will be closely watching Driven Brands' pending restatements to understand the full extent of the accounting issues that led to the plunge in its stock price.