#USA #Class Action #Charlotte #Driven Brands #Bernstein Litowitz

Class Action Settlement Approved: Driven Brands Holdings Inc.

In a significant legal development, Bernstein Litowitz Berger & Grossmann LLP has announced that the United States District Court for the Western District of North Carolina has approved a proposed class action settlement on behalf of shareholders of Driven Brands Holdings Inc. Common stock (NASDAQ: DRVN). This announcement is crucial for investors who purchased Driven Brands shares during the class period, which spans from October 27, 2021, to August 1, 2023.

Details of the Settlement

The settlement includes a monetary compensation of $25 million that aims to resolve all claims tied to allegations against Driven Brands and its former executives. Lead plaintiffs, representing themselves and other affected investors, assert that the company and its officers misled shareholders regarding significant aspects of its business operations. Specifically, allegations suggest that Driven Brands was not transparent about its attempts to consolidate a nationwide auto-glass business and the operational efficiency within its car wash segment.

The class action lawsuit names Jonathan G. Fitzpatrick, the former CEO, and Tiffany L. Mason, the former CFO, as defendants, who are accused of making false statements that led to financial loss for investors. Both executives have denied the accusations, maintaining that their actions complied with federal securities laws. As part of the settlement hearing, which is scheduled for June 1, 2026, the court will evaluate the fairness and adequacy of the proposed settlement.

Implications for Investors

For affected shareholders, this settlement presents an opportunity to receive compensation for their losses if the settlement is approved. Investors must be aware that they need to submit a Claim Form to receive a share of the compensation. This form must be completed and submitted before the deadline of July 6, 2026, to be eligible for payment from the settlement fund. Alternatively, investors who do not wish to participate may opt to exclude themselves from the settlement by following the procedures outlined in the official notices.

Upcoming Hearing Details

The hearing for this proposed settlement is set to occur at 9:45 a.m. on June 1, 2026, presided over by the Honorable Max O. Cogburn, Jr. Interested parties have the option to attend either in person or remotely, depending on the court's directives at that time. During this hearing, the court will not only evaluate the agreement but also consider other crucial aspects such as whether the action should be class-certified and whether the proposed attorney’s fees are reasonable.

Conclusion

The case emphasizes the necessity of transparency from corporate executives regarding operational claims and the consequences of failing to uphold these standards. For Driven Brands shareholders, the upcoming hearing will be pivotal, as it will determine the legitimacy and execution of the proposed settlement.

For additional information, affected investors are encouraged to contact the Claims Administrator or refer to the dedicated settlement website: Driven Brands Securities Litigation. Additionally, inquiries can be directed to Lead Counsel at Bernstein Litowitz Berger & Grossmann LLP for more guidance and details regarding the ongoing proceedings and claims process.