Driven Brands Faces Securities Fraud Class Actions

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

Apr. 11, 2026 at 2:50am

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A photorealistic studio still life featuring a stack of financial documents, a broken calculator, and a single red pen on a clean, monochromatic background, symbolizing the abstract concepts of corporate finance, risk, and market uncertainty.A stark visual metaphor for the financial turmoil facing Driven Brands after its erroneous financial reporting.New Orleans Today

Kahn Swick & Foti, LLC (KSF) and former Louisiana Attorney General Charles C. Foti, Jr. are reminding investors with substantial losses that they have until May 8, 2026 to file lead plaintiff applications in securities class action lawsuits against Driven Brands Holdings Inc. (NasdaqGS: DRVN). The lawsuits allege the company failed to disclose material information during the Class Period from May 3, 2023 to February 24, 2026, violating federal securities laws.

Why it matters

The lawsuits claim Driven Brands failed to disclose material errors in its consolidated financial statements for fiscal years 2023 and 2024, as well as quarterly periods in 2025, leading to a 39% stock price decline when the issues were disclosed. This highlights concerns around corporate transparency and accountability for public companies.

The details

On February 25, 2026, Driven Brands disclosed it had identified at least seven different categories of "material errors" in its financial statements, which would require restatement. As a result, the company delayed filing its 2025 Annual Report. The first-filed case is Clark v. Driven Brands Holdings Inc., et al., No. 26-cv-01902, with a subsequent case, City of Hollywood Police Officers' Retirement System v. Driven Brands Holdings Inc., et al., No. 26-cv-00283, expanding the class period.

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

The players

Kahn Swick & Foti, LLC

A boutique securities litigation law firm, ranked among the top 10 nationally based on total settlement value. KSF serves institutional and retail investors seeking recoveries for investment losses from corporate fraud or malfeasance.

Charles C. Foti, Jr.

The former Attorney General of Louisiana and a partner at Kahn Swick & Foti, LLC.

Driven Brands Holdings Inc.

A publicly traded company (NasdaqGS: DRVN) that provides automotive services and products.

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What they’re saying

“If you purchased shares of Driven and would like to discuss your legal rights and how these cases might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nasdaqgs-drvn/ to learn more.”

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

What’s next

The judge will decide by May 8, 2026 whether to allow the securities class action lawsuits to proceed as lead plaintiff cases.

The takeaway

The Driven Brands case highlights the importance of corporate transparency and accurate financial reporting for publicly traded companies. Investors rely on this information to make informed decisions, and any material errors or misstatements can have significant consequences, including lawsuits and stock price declines.