Driven Brands Faces Securities Fraud Lawsuit After Accounting Errors

Lawsuit filed after company's stock drops nearly 40% due to financial restatements and internal control failures

Published on Mar. 9, 2026

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Driven Brands Holdings Inc. (NASDAQ:DRVN), an automotive aftermarket services company, is facing a securities fraud class action lawsuit after disclosing widespread accounting errors and internal control failures that caused its stock to drop nearly 40%. The lawsuit alleges the company issued materially false financial statements from 2023 to 2025, and failed to maintain effective internal controls, leading to the stock decline on February 25, 2026.

Why it matters

The lawsuit highlights the importance of accurate financial reporting and effective internal controls for publicly traded companies. Investors rely on this information to make informed decisions, and any material misstatements or control failures can have significant consequences, including shareholder lawsuits and stock price drops.

The details

According to the lawsuit, Driven Brands disclosed it would restate its financial statements for fiscal years 2023 and 2024, as well as quarterly and year-to-date financials for 2025, after identifying numerous material accounting errors. The company also revealed material weaknesses in its internal controls over financial reporting and delayed the filing of its 2025 Form 10-K.

  • On February 25, 2026, Driven Brands' stock dropped from $16.61 per share on February 24, 2026, to open at $9.99 per share, a decline of nearly 40%.
  • The lead plaintiff deadline for the class action lawsuit is May 8, 2026.

The players

Driven Brands Holdings Inc.

An automotive aftermarket services company that owns, operates, and franchises vehicle maintenance, repair, collision, glass, and car wash brands.

Bleichmar Fonti & Auld LLP

A leading international law firm representing plaintiffs in securities class actions and shareholder litigation.

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What’s next

Investors have until May 8, 2026, to ask the Court to be appointed to lead the case.

The takeaway

This case highlights the importance of accurate financial reporting and effective internal controls for publicly traded companies, as any material misstatements or control failures can have significant consequences for investors.