Driven Brands Class Action Lawsuit Overview
The class action lawsuit asserts securities fraud 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 class action is pending in the U.S. District Court for the Southern District of New York. It is captioned Clark v. Driven Brands Holdings Inc., et al., 1:26-cv-01902.
If you lost money on your Driven Brands investment, you are encouraged to submit your information using the form on this page. You may also email adam@bfalaw.com or call 212.789.3619.
Why Is Driven Brands being Sued for Securities Fraud?
Driven Brands is being investigated for violations of the federal securities laws following a significant stock drop. The decline in Driven Brands’ stock price caused significant losses to investors.
Driven Brands is an automotive aftermarket services company that owns, operates, and franchises vehicle maintenance, repair, collision, glass, and car wash brands.
Throughout the relevant period, Driven Brands assured investors that its financial reporting was accurate and that its internal controls were effective.
As alleged, these statements were materially false and misleading because Driven Brands 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.
Why did Driven Brands’ Stock Drop?
On February 25, 2026, 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 this news, the price of Driven Brands stock dropped over 30% on February 25, 2026.
What is the Driven Brands Leadership Deadline?
You may ask the Court no later than May 8, 2026, to appoint you as Lead Plaintiff through counsel of your choice.
To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
How Do I Submit My Information?
If you lost money when Driven Brands securities dropped in price, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.
You can also contact:
Adam McCall
amccall@bfalaw.com
212.789.3619
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of any class action lawsuit. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.
BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360, and “SuperLawyers” by Thomson Reuters.
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
