#United States #New York #Securities Class Action #Hagens Berman #Driven Brands

Driven Brands Faces Legal Troubles Amid Accounting Scandal

Driven Brands Holdings Inc. (NASDAQ: DRVN) is currently embroiled in a significant legal battle following the announcement of substantial accounting errors in its financial statements. On February 25, 2026, the company revealed that the financial results for the fiscal years 2023 and 2024, as well as all quarterly reports up until September 2025, had been compromised due to material mistakes. This revelation has not only shaken investor confidence but has also led to a class action lawsuit against the company and its top executives.

The lawsuit, titled Clark v. Driven Brands Holdings Inc., et al., No. 126-cv-01902, is filed in the U.S. District Court for the Southern District of New York. It aims to recover losses for all individuals and entities that purchased or otherwise acquired Driven Brands common stock during the class period from May 9, 2023, through February 24, 2026. Investors who have faced financial setbacks due to this turmoil are encouraged to review their options via Hagens Berman's DRVN Case Page.

Allegations and Internal Failures

The allegations in the case assert that Driven Brands violated federal securities laws by failing to maintain necessary financial controls. Hagens Berman, the law firm leading this case, points out a complete breakdown in corporate oversight and financial transparency.

According to statements from the firm, the material breaches the company admitted to included:

• - Material Accounting Errors: The company’s inability to present reliable financial statements over the past two years raised major red flags for investors.
• - Internal Control Weaknesses: Driven Brands acknowledged significant shortcomings in its internal controls related to financial reporting, such as issues with lease accounting and unreconciled cash accounts.
• - Delayed Filings: The company’s failure to file timely reports further obscured the actual state of its financial health, stoking uncertainty and mistrust among investors. This was particularly concerning as it delayed its 2025 Form 10-K, leaving investors in the dark.

Market Reactions and Impact

The fallout was swift and severe. Following the company’s disclosure, Driven Brands' stock plummeted sharply, opening at $9.99 on February 25, 2026, down from a previous closing price of $16.61 the day before—an alarming decline of nearly 40% within one trading session. This dramatic decrease highlights the ripple effects that such scandals can have on investor sentiment and market stability.

Urgent Call to Action for Investors

Investors affected by these developments are given an urgent reminder about a critical deadline: May 8, 2026. Those who purchased Driven Brands stock during the outlined class period have until this date to request the Court's appointment as Lead Plaintiff in this class action lawsuit.

The firm is providing various resources and support to potential plaintiffs, including details on how to submit claims regarding investment losses. Whistleblowers with non-public information about Driven Brands are encouraged to step forward, as they may receive rewards under the SEC Whistleblower program.

About Hagens Berman

Hagens Berman is a renowned plaintiffs’ rights law firm that focuses on corporate accountability. The firm has a robust portfolio representing investors, whistleblowers, consumers, and workers, and has successfully secured over $2.9 billion in settlements and recoveries in various cases related to corporate negligence. The team’s history of fighting for justice has established Hagens Berman as a strong advocate for investor rights.