Driven Brands Faces Securities Fraud Lawsuit

Investors have until May 8, 2026 to seek lead plaintiff status in class action lawsuit

Apr. 6, 2026 at 2:00pm

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A securities fraud class action lawsuit has been filed against Driven Brands Holdings Inc. (NASDAQ: DRVN) on behalf of investors who purchased or acquired Driven Brands common stock between May 9, 2023 and February 24, 2026. The lawsuit alleges that Driven Brands made material misstatements and/or omissions concerning the company's accounting and internal controls over financial reporting.

Why it matters

The lawsuit alleges that Driven Brands' accounting errors and internal control weaknesses led to the overstatement of cash, revenue, and other financial metrics, as well as the understatement of expenses. This raises concerns about the reliability of Driven Brands' financial reporting and could impact investor confidence in the company.

The details

The complaint alleges that Driven Brands misrepresented and/or failed to disclose: (1) errors in recording leases, (2) errors in reporting cash balances and operating cash flows, (3) improper presentation of supply and other expenses, (4) other errors related to income tax, revenue recognition, and more, and (5) material weaknesses in internal controls over financial reporting.

  • On February 25, 2026, Driven Brands disclosed it would restate financials for 2023, 2024, and 2025 due to the accounting errors.
  • On February 25, 2026, Driven Brands' stock price fell nearly 40% on this news.

The players

Driven Brands Holdings Inc.

A NASDAQ-listed automotive services company that provides maintenance, repair and collision services.

Kessler Topaz Meltzer & Check, LLP

A nationally recognized securities litigation law firm representing the plaintiffs in the class action lawsuit against Driven Brands.

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What they’re saying

“If you purchased or acquired Driven Brands common stock and have lost money on your investment, you are encouraged to contact KTMC attorney Jonathan Naji, Esq. at:”

— Jonathan Naji, Attorney, Kessler Topaz Meltzer & Check, LLP

What’s next

Investors have until May 8, 2026 to file for lead plaintiff status in the class action lawsuit against Driven Brands.

The takeaway

This case highlights the importance of accurate financial reporting and strong internal controls, especially for publicly traded companies. The accounting errors and internal control weaknesses at Driven Brands have eroded investor trust and could lead to significant financial and reputational consequences for the company.