Driven Brands Hit With Securities Class Action After Admitting Material Accounting Errors

Overview

• Filed in the Southern District of New York, Clark v. Driven Brands Holdings Inc., No. 26-cv-01902, names the company and certain current and former executives for alleged Exchange Act violations.
• The putative class covers purchases from May 9, 2023 through Feb. 24, 2026, with multiple firms — Rosen Law Firm, Robbins Geller, and Hagens Berman — soliciting investors ahead of the lead-plaintiff deadline.
• On Feb. 25, 2026, the Audit Committee said fiscal 2023–2024 financials and 2025 quarterly periods contained material errors, require restatement, and should not be relied upon.
• Driven Brands disclosed material weaknesses in internal controls over financial reporting and delayed its 2025 Form 10-K filing.
• The stock dropped nearly 40% on the disclosure, as complaints detail unreconciled cash, lease-accounting errors, expense misclassification, and improperly recognized revenue in the ATI business.