Driven Brands Faces Expanded Securities Class Action Lawsuit

Hagens Berman alleges pervasive accounting errors and internal control failures at the auto repair company

Apr. 17, 2026 at 1:12pm by

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A high-end studio photograph featuring a stack of financial reports, a calculator, and a gavel arranged on a clean, monochromatic background, symbolizing the abstract concepts of corporate finance, risk, and accountability.A photographic still life captures the complex financial 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, expanding the initial class period to May 3, 2023 through February 24, 2026. The lawsuit alleges that Driven Brands issued materially misstated financial statements during this time, which the company later admitted required restatement due to improper accounting practices.

Why it matters

The case highlights concerns about corporate oversight and financial transparency at Driven Brands, a major player in the auto repair industry. The company's accounting issues and failure to file timely financial reports have wiped out over $900 million in market value, raising questions about the reliability of its past disclosures to investors.

The details

The lawsuit alleges that Driven Brands repeatedly assured investors its financial statements were prepared properly and its internal controls were effective. However, the company later admitted the prior statements were materially misstated and would require restatement, citing issues with lease adjustments, cash adjustments, expense classification, and inappropriately recognized revenue. Driven Brands also revealed its internal controls over financial reporting were not effective and were materially weak.

  • On February 25, 2026, Driven Brands announced investors should no longer rely on previously filed financial statements and that restatements were required.
  • On February 26, 2026, Driven Brands announced it would not timely file its annual report for 2025 due to the pending restatements.

The players

Driven Brands Holdings Inc.

A major player in the auto repair industry that operates several automotive service brands.

Hagens Berman

A national shareholder rights law firm leading the investigation and securities class action lawsuit against Driven Brands.

Reed Kathrein

The Hagens Berman partner leading the firm's investigation of 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, Partner, Hagens Berman

What’s next

The lead plaintiff deadline for the expanded securities class action lawsuit against Driven Brands is May 8, 2026. Hagens Berman continues to investigate the claims and encourages investors with substantial losses to come forward.

The takeaway

This case highlights the importance of reliable financial reporting and effective internal controls, especially for publicly traded companies. The accounting issues at Driven Brands have significantly impacted investor confidence and the company's market value, underscoring the need for strong corporate governance and transparency.