Driven Brands Faces Securities Fraud Allegations, Triggering Stock Plunge

Investors may have legal options after company discloses accounting errors and internal control failures

Mar. 23, 2026 at 11:13am

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Leading securities law firm Bleichmar Fonti & Auld LLP has announced a class action lawsuit against Driven Brands Holdings Inc. (NASDAQ:DRVN) and certain of the company's senior executives for securities fraud. The lawsuit alleges that Driven Brands issued materially false financial statements and failed to maintain effective internal controls, causing the company's stock to drop nearly 40% 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 who suffered losses due to Driven Brands' alleged misconduct may be able to recover their losses through the class action lawsuit.

The details

Driven Brands, an automotive aftermarket services company, allegedly suffered from pervasive accounting errors, including lease accounting issues, unreconciled cash balances, improperly classified expenses, and improperly recognized revenue, spanning fiscal years 2023 through 2025. On February 25, 2026, the company disclosed that 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 these 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 24, 2026, Driven Brands' stock closed at $16.61 per share.
  • On February 25, 2026, Driven Brands' stock opened at $9.99 per share, a decline of nearly 40%.
  • Investors have until May 8, 2026, to ask the Court to be appointed to lead the case.

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 they’re saying

“If you invested in Driven Brands, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/driven-brands-class-action-lawsuit.”

— Adam McCall, Attorney

What’s next

The judge in the case will decide on May 8, 2026, whether to appoint a lead plaintiff to represent the class of investors.

The takeaway

This case highlights the importance of accurate financial reporting and effective internal controls for publicly traded companies. Investors who suffered losses due to Driven Brands' alleged misconduct may be able to recover their losses through the class action lawsuit.