Driven Brands Hit with Securities Fraud Class Action

Investors may contact Lewis Kahn, Esq. at Kahn Swick & Foti, LLC regarding erroneous financial statements and 39% stock decline.

Mar. 12, 2026 at 2:55pm

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Kahn Swick & Foti, LLC ('KSF') and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., are reminding investors with substantial losses that they have until May 8, 2026 to file lead plaintiff applications in a securities class action lawsuit against Driven Brands Holdings Inc. (NasdaqGS: DRVN). The lawsuit alleges that the company failed to disclose material information during the Class Period, resulting in erroneous financial statements and a 39% stock decline.

Why it matters

This case highlights the importance of accurate financial reporting and transparency for publicly traded companies. Investors rely on this information to make informed decisions, and any discrepancies can lead to significant losses. The class action lawsuit aims to hold Driven Brands accountable and potentially recover losses for affected shareholders.

The details

Driven Brands disclosed that it had identified at least seven different categories of 'material errors' in the Company's consolidated financial statements for fiscal years 2023 and 2024, as well as in quarterly periods in 2025, and that 'such financial statements should not be relied upon and required restatement'. As a result, the Company delayed the filing of its Annual Report on Form 10-K for the fiscal year 2025 and needed to restate its financials for fiscal years 2023, 2024, and the first three quarters of 2025. This news caused the price of Driven Brands' shares to fall nearly 40%, from a close of $16.61 on February 24, 2026, to open at $9.99 on February 25, 2026.

  • On February 25, 2026, the Company disclosed the material errors in its financial statements.
  • Investors have until May 8, 2026 to file lead plaintiff applications in the securities class action lawsuit.

The players

Driven Brands Holdings Inc.

A publicly traded company (NasdaqGS: DRVN) that is facing a securities fraud class action lawsuit.

Kahn Swick & Foti, LLC (KSF)

A boutique securities litigation law firm that is representing investors in the class action lawsuit against Driven Brands.

Charles C. Foti, Jr.

A partner at KSF and the former Attorney General of Louisiana.

Lewis Kahn

The managing partner at KSF who is handling the class action lawsuit against Driven Brands.

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What they’re saying

“We must hold Driven Brands accountable for their failure to disclose material information and the resulting impact on investors.”

— Charles C. Foti, Jr., Partner, Kahn Swick & Foti, LLC

“Investors with substantial losses should contact us to discuss their legal rights and how this case might affect their ability to recover their economic losses.”

— Lewis Kahn, Managing Partner, Kahn Swick & Foti, LLC

What’s next

The judge will decide on May 8, 2026 whether to allow the class action lawsuit to proceed.

The takeaway

This case highlights the importance of accurate financial reporting and transparency for publicly traded companies. Investors rely on this information to make informed decisions, and any discrepancies can lead to significant losses. The class action lawsuit aims to hold Driven Brands accountable and potentially recover losses for affected shareholders.