Driven Brands Investors Notified of Rights in Securities Class Action After Stock Plummets 40%

Lawsuit alleges company issued false financial statements and failed to maintain effective internal controls.

Mar. 24, 2026 at 10:59am

Got story updates? Submit your updates here. ›

A class action lawsuit has been filed 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 growing concerns about corporate accountability and the importance of accurate financial reporting, especially for publicly traded companies. Investors rely on companies to provide truthful information, and any evidence of securities fraud can have significant consequences.

The details

The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Driven Brands common stock. The case is pending in the U.S. District Court for the Southern District of New York. Driven Brands 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 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%.
  • 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.

Got photos? Submit your photos here. ›

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 rely on companies to provide truthful information, and any evidence of securities fraud can have significant consequences for the company and its shareholders.