BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith reminds investors of the upcoming May 8, 2026 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Driven Brands Holdings Inc. (“Driven Brands” or the “Company”) (NASDAQ: DRVN) common stock between May 9, 2023 and February 24, 2026, inclusive (the “Class Period”).
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN DRIVEN BRANDS HOLDINGS INC. (DRVN), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On February 25, 2025, Driven Brands disclosed “material errors in [the Company’s] previously issued consolidated financial statements” dating back to 2023. As such, its “financial statements should not be relied upon and required restatement.”
The Company disclosed at least ten different categories of errors which included: “inappropriately recognized revenue,” “unreconciled differences for cash accounts,” overstatement of expenses, and issues with the “completeness and accuracy of recording leases.” The Company noted it “may identify further material errors.”
On this news, Driven Brands’ stock price fell $5.01, or 30.2%, to close at $11.60 per share on February 25, 2026, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) there were errors relating to the recording of leases which primarily impacted the right of use assets and right of use liabilities recorded in the consolidated balance sheet as of December 28, 2024, and September 27, 2025; (2) there were errors in reporting opening and ending cash balances and operating cash flows, which resulted in overstatements of cash and revenue and understatement of selling, general and administrative expense in consolidated statement of operations for fiscal years 2023 and 2024; (3) supply and other expenses were improperly presented as company-operated store expenses in fiscal years 2023 and 2024; (4) other errors were identified relating to income tax provision, supply and other revenue, fixed assets, cloud computing, lease cash applications, and balance sheet and income statement misclassifications; (6) the Company improperly recognized revenue in Driven Brands’ ATI business; and (7) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Driven Brands common stock during the Class Period, you may move the Court no later than May 8, 2026 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements.
Contact Us To Participate or Learn More:
If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Contact Us:
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
[email protected]
www.howardsmithlaw.com
