#United States #New Orleans #Kahn Swick #Charles Foti #Driven Brands

Ongoing Legal Investigation of Driven Brands Holdings Inc.

In recent developments, the law firm Kahn Swick & Foti, LLC, spearheaded by former Louisiana Attorney General Charles C. Foti, Jr., has taken significant steps in investigating Driven Brands Holdings Inc. (NASDAQ: DRVN). The investigation comes in the wake of the company reporting disappointing second-quarter results for 2023, which revealed that the firm fell short of earnings expectations across several segments, particularly in its Glass division.

The press release from KSF indicates that the issues at Driven Brands can be traced back to several integrations of acquired businesses that have not gone as planned. Specifically, these shortcomings span multiple segments including auto glass, car washes, and paint and collision services, all of which have reportedly underperformed. The firm acknowledged that their Glass business segment has lagged several quarters behind the integration timeline slated for its acquired entities. Moreover, competition within the car wash sector has intensified, contributing to a decline in consumer demand.

The disappointing earnings led to a significant revision of the company’s full-year guidance for fiscal 2023, an adjustment that contradicts earlier assurances made by Driven Brands executives. As a consequence of these events, a securities class action lawsuit has been filed against Driven Brands and several of its executives. The lawsuit alleges that the company failed to disclose critical information, which may have constituted a breach of federal securities laws. Recently, a court ruling allowed the case to progress after denying the company's motion to dismiss, thereby entrenching the legal scrutiny over its operations.

Kahn Swick & Foti’s investigation aims to ascertain whether the officers and directors of Driven Brands have violated their fiduciary duties to shareholders or engaged in other unlawful activities. The firm continues to gather information that could support the concerns raised in the lawsuit and holds the potential to impact future proceedings.

Shareholders and those affected by Driven Brands's performance are encouraged to reach out to KSF for a no-obligation consultation. The firm is keen to connect with individuals who may have substantive information or who have held shares in the company for an extended period. Interested parties can directly contact KSF through their dedicated toll-free number or via email, with further information available on the firm's official website.

About Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC is recognized as one of the nation’s leading boutique litigation firms specializing in securities law. With a robust track record, KSF has consistently been ranked among the top securities litigation firms based on total settlement values. The firm's clientele includes both public and private institutional investors, as well as individual retail investors. KSF’s team works tirelessly to seek recoveries for losses incurred due to corporate fraud or malpractice by publicly traded companies. In addition to its New York headquarters, KSF operates from offices in various states including Delaware, California, Louisiana, Chicago, and New Jersey.

As the investigation continues, both KSF and Driven Brands are poised at a critical juncture, one that could redefine the company’s operational integrity and shareholder relations amidst growing legal challenges. This inquiry not only sheds light on Driven Brands' internal management but also underscores the evolving landscape of corporate governance and liability within publicly traded firms. Stakeholders will undoubtedly be closely monitoring developments as KSF proceeds with its investigation.