Driven Brands Faces Investor Push to Lead Class Action Over Accounting Errors

Overview

• Law firms this week urged investors with losses in Driven Brands to seek lead‑plaintiff roles in securities class actions.
• The filings follow the company’s admission that past consolidated financial statements were materially misstated and require restatement.
• Driven Brands says its review of material weaknesses in financial reporting continues and it has not filed its overdue annual and quarterly reports.
• Nasdaq issued a non‑compliance notice for late filings, and the company says it expects to submit the reports by mid‑June to work toward regaining compliance.
• Complaints cite lease accounting errors, unreconciled cash, misclassified expenses, and revenue recognized in the ATI unit, and the stock fell about 30% after the February disclosures.