Company Announcements

Lead Plaintiff Deadline is May 8, 2026

NEW YORK , March 11, 2026 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed against Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven or the "Company") and certain of its officers on behalf of investors who purchased or otherwise acquired Driven securities between May 9, 2023 and February 24, 2026, inclusive (the "Class Period"). Investors have until May 8, 2026, to seek appointments as lead plaintiff.

PLEASE CLICK HERE TO JOIN THE CASE AND SUBMIT CONTACT INFORMATION

Core Allegations

The complaint alleges that Driven Brands and certain executives made materially false or misleading statements and failed to disclose significant accounting errors affecting the company's financial statements during the class period.

Specifically, the lawsuit claims defendants failed to disclose:

1. Lease Accounting Errors
   • Errors in recording leases affecting right-of-use assets and lease liabilities in the balance sheet for:
     • Fiscal year ended December 28, 2024
       
       
     • Quarter ended September 27, 2025
       
       
2. Cash Flow and Balance Errors
   • Misreporting of opening and ending cash balances and operating cash flows, which allegedly resulted in:
     • Overstated cash balances
       
       
     • Overstated revenue
       
       
     • Understated selling, general and administrative (SG&A) expenses
       
       
   • These issues affected fiscal 2023 and 2024 financial statements.
3. Expense Misclassification
   • Certain supply and other expenses were improperly classified as company-operated store expenses.
     
     
4. Additional Accounting Errors
   The company allegedly identified multiple other accounting issues, including errors related to:
   • Income tax provisions
     
     
   • Supply and other revenue recognition
     
     
   • Fixed assets
     
     
   • Cloud computing accounting
     
     
   • Lease cash applications
     
     
   • Balance sheet and income statement classifications
     
     
   • Revenue recognition in the ATI business, primarily in fiscal 2025.

Corrective Disclosure

On February 25, 2026, Driven Brands announced that its Audit Committee determined prior financial statements contained material errors and should no longer be relied upon, requiring restatement of:

• Fiscal year 2023
  
  
• Fiscal year 2024
  
  
• Multiple 2024 and 2025 quarterly filings.

The company also disclosed it would delay the release of its FY2025 and Q4 2025 results.

Market Reaction

Following the announcement:

• Driven Brands' stock price fell approximately 30% in a single trading session.

Investors who suffered losses have until May 8, 2026 to seek appointment as lead plaintiff.

Why Wolf Haldenstein Adler Freeman & Herz LLP?:

This illustrious firm, founded in 1888, is steadfast in their pursuit of justice for investors who have suffered financial harm due to these misrepresented statements. The law firm brings to the fore over 125 years of legal expertise in securities litigation and has a proven track record of protecting the rights of investors.

We encourage all investors who have been affected or have information that will assist in our investigation, to contact Wolf Haldenstein Adler Freeman & Herz LLP.

Contact:

• Phone: (800) 575-0735 or (212) 545-4774
• Email: classmember@whafh.com
• Contact Person: Gregory Stone, Director of Case and Financial Analysis

Firm Website:  Wolf Haldenstein Adler Freeman & Herz LLP

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP