Driven Brands Holdings Inc. Faces Class Action Lawsuit

Allegations of misleading investors lead to significant stock price drop.

Driven Brands Holdings Inc. is facing a class action lawsuit filed on behalf of all purchasers of its common stock between October 27, 2021 and August 1, 2023.
The lawsuit alleges that Driven misled investors about its ability to integrate its U.S. Auto Glass business and the performance of its Car Wash segment.
The company's former Chief Financial Officer, Tiffany L. Mason, abruptly left the company on May 4, 2023, just one day after Driven reported its financial results for the first quarter of 2023.
On August 2, 2023, Driven reported disappointing earnings for the second quarter of 2023 and slashed its earnings guidance for fiscal 2023.
These disclosures caused the price of Driven common stock to decline by $10.63 per share, or 41%.