Driven Brands (DRVN) Faces Expanded Class Period in Securities Class Action Amid Pending Financial Restatements – Hagens Berman

SAN FRANCISCO--(BUSINESS WIRE)--National shareholder rights law firm Hagens Berman is notifying investors that a securities class action lawsuit related to the initial suit has been filed against Driven Brands Holdings Inc. (NASDAQ: DRVN) and its top executives. The related case expands the initial Class Period and seeks to represent investors who purchased or otherwise acquired Driven Brands common stock between May 3, 2023 and February 24, 2026.

Investors should no longer rely on previously filed financial statements.

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The initial and related case follow Driven Brands’ February 25 and February 26, 2026 announcements that investors should no longer rely on previously filed financial statements which required restatement and that the company would not timely file its annual report for the year ended December 27, 2025, respectively.

As a result of these bombshell disclosures, investors saw the price of Driven Brands shares crater $5.61 (-33%) during the three trading days ended February 27, 2026, wiping out over $900 million of the company’s market capitalization.

Hagens Berman continues to investigate the legal claims that Driven Brands violated the federal securities laws and encourages investors with substantial losses to submit your losses now before the May 8, 2026 Lead Plaintiff Deadline. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact the firm’s attorneys.

Driven Brands (DRVN) Securities Class Action:

The litigation is focused on Driven Brands’ past, repeated assurances that its financial statements were prepared in conformity with relevant accounting rules and that its internal control over financial reporting was effective.

In contrast to the company’s assurances, the initial and related complaint alleges that Driven Brands and the other defendants misled investors about the company’s financial health by issuing misstated financial statements from fiscal year 2023 through the first three quarters of fiscal year 2025.

The truth emerged before the markets opened on February 25, 2026. That day, Driven Brands admitted that the aforementioned, previously filed financial statements were materially misstated, should no longer be relied upon, and would be restated. The company cited improper accounting in lease adjustments, cash adjustments, expense classification, and other matters that included inappropriately recognized revenue.

Then, after hours on February 26, 2026, the company announced that it would not timely file its annual report for the year ended December 27, 2025 as a result of the pending restatements and revealed its internal control over financial reporting was not effective and materially weak.

To date, Driven Brands has not filed its restatements, leaving investors in the dark about the severity of its improper accounting.

“The Driven Brands case alleges a fundamental failure of corporate oversight and financial transparency,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation of the claims alleged in the pending suits.

If you invested in Driven Brands and have substantial losses, or have knowledge that will assist the firm’s investigation, submit your losses now.

View our latest video summary of the allegations: www.youtube.com/watch?v=EwsGKJAAbdM&t=2s

If you’d like more information and answers to additional frequently asked questions about the Driven case and the firm’s investigation, read more »

Whistleblowers: Persons with non-public information regarding Driven should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email DRVN@hbsslaw.com.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.