#USA #New York #Class Action #Pomerantz LLP #Driven Brands

Investor Alert: Class Action Lawsuit Against Driven Brands Holdings Inc. (DRVN)

Pomerantz LLP, a leading law firm specializing in securities class actions, has formally announced the filing of a class action lawsuit against Driven Brands Holdings Inc., known on the NASDAQ as DRVN. This lawsuit primarily addresses allegations involving significant securities fraud and other questionable business practices employed by the company and its officers.

The Allegations

As per the legal notice, the lawsuit raises serious concerns regarding how Driven Brands and its management handled financial disclosures. Of particular note is a recent disclosure by the company regarding critical inaccuracies in its previously released financial statements for the fiscal years 2024 and 2023. These inaccuracies formed the basis for the company's Notice of Non-Reliance submitted to the U.S. Securities and Exchange Commission on February 25, 2026.

The notification indicated that material errors had occurred in their financial reporting, hence, rendering those earlier statements misleading. Key issues included:

• - Completeness and accuracy in lease recording
• - Unreconciled cash account discrepancies
• - Misrepresentation of expenses in financial reports
• - Incorrect revenue recognition related to the company's operations, particularly in its ATI business for fiscal year 2025.

These findings raised red flags about the internal controls over financial reporting within Driven Brands, revealing significant deficiencies that existed as of December 27, 2025.

Financial Impact

The ramifications of these allegations were immediate and severe. Following the announcement, Driven’s stock suffered a drastic decline, falling by $5.01 or approximately 30.16%, closing at just $11.60 per share. This decline not only reflects the market’s reaction to the disclosed financial troubles but also indicates the potential loss suffered by investors involved.

What This Means for Investors

Investors who purchased securities of Driven Brands during the class period must act swiftly. The Pomerantz Law Firm advises that those who believe they have incurred losses due to these alleged fraudulent practices can join the lawsuit. The deadline for potential plaintiffs to request to be appointed as Lead Plaintiff is May 11, 2026. Interested investors are encouraged to contact Danielle Peyton at the law firm via email or phone for more information. It is crucial to provide details such as your mailing address, phone contact, and the number of shares purchased during the relevant period when making inquiries.

About Pomerantz LLP

Founded by legal pioneer Abraham L. Pomerantz, Pomerantz LLP has established itself as a reputable firm in the realm of securities litigation, having a proven track record of recovering millions for investors affected by corporate misconduct. With offices in major cities such as New York, Chicago, and London, Pomerantz remains committed to upholding the rights of investors and seeking justice in cases of fraud and breaches of fiduciary duty. For more information regarding the case or to view the complaint, individuals can visit www.pomerantzlaw.com.

In these uncertain times for investors, it's essential to stay informed and proactive, especially in light of legal developments that could affect your finances. Don't hesitate to reach out to legal experts if you suspect that your investments may have been impacted by dubious practices.